Day rate to salary: what £300–£800 a day really pays
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A day rate isn't a salary. Contractors don't work 365 days — a realistic planning assumption is 220 chargeable days (46 weeks × ~4.8) after holidays, bank holidays, sickness and bench time. Here's what umbrella take-home looks like at 220 days:
| Day rate | Yearly take-home | Per month |
|---|---|---|
| £300 | £42,863.40 | £3,571.95 |
| £400 | £53,709.40 | £4,475.78 |
| £500 | £64,555.40 | £5,379.62 |
| £600 | £74,221.40 | £6,185.12 |
| £700 | £83,465.40 | £6,955.45 |
| £800 | £93,376.40 | £7,781.37 |
On the LTD side, dividends push the same day rates roughly 1,528 higher a year at £500/day — see the full 2026/27 comparison.
Bench time is a rate problem, not a luck problem
Plan the gap before it happens: renewals agreed 4–6 weeks out, a pipeline of two live conversations per contract-month, and cash buffer sized from the monthly column below.
Where the 220-day assumption bends
Senior contractors with repeat clients often run 230–240 chargeable days; first-year contractors chasing gaps often land nearer 180. The honest way to plan is to model your own pipeline: contract length, notice period (one week either side is standard), and the bench between engagements. The table's monthly column is the number your landlord cares about — divided by twelve, not by the months you happen to work.
Inside-IR35 equivalents
The same headline rate inside IR35 nets materially less: employer-side deductions and PAYE apply where the dividend route used to sit. At £500/day the gap against the umbrella column above is thousands per year — run both routes for any offer with the calculator, and check the role's status evidence on the live board before assuming which column applies.
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