Umbrella Company Calculator
Calculate take-home pay through an umbrella company. See full payslip breakdown with employer NI and fees.
Last updated: April 2026 · Source: GOV.UK — Working through an umbrella company
Annual Take-Home Pay
£50,439.90
£4,203.33/month · Effective deduction: 42.68%
| Gross Revenue (220 days x £400) | £88,000.00 |
| Employer NI (15%) | -£12,450.00 |
| Umbrella Fee | -£300.00 |
| Gross Salary | £75,250.00 |
| Income Tax | -£17,532.00 |
| Employee NI | -£3,515.60 |
| Pension (5%) | -£3,762.50 |
| Take-Home | £50,439.90 |
Disclaimer
This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.
How It Works
An umbrella company employs contractors on behalf of end clients and handles all payroll administration. Your assignment rate is paid to the umbrella, which deducts employer NI (15% above £5,000), the apprenticeship levy (if applicable), employer pension contributions and a margin fee before processing PAYE on the remaining amount.
Your payslip from an umbrella shows the assignment rate, less employer costs, giving a gross salary figure. From this gross, income tax, employee NI, employee pension and any student loan repayments are deducted to arrive at your take-home pay. The key difference from PAYE employment is that you bear the employer NI cost through a lower gross salary.
This calculator compares umbrella take-home pay with PAYE employment and limited company contracting for the same day rate. It shows where each penny goes — employer NI, umbrella margin, tax, employee NI and pension — so you can make an informed decision about your working arrangement.
Example: £400/day contract rate, 20 days/month
- Monthly assignment rate: £8,000
- Less employer NI (15%): approx. −£978
- Less umbrella margin: −£30
- Gross salary: approx. £6,992
- Less tax, NI, pension: approx. −£2,310
- Net take-home: approx. £4,682
Frequently Asked Questions
- What does the Umbrella Company Calculator do?
- Calculate take-home pay through an umbrella company. See full payslip breakdown with employer NI and fees. All calculations are performed in your browser using official UK rates and thresholds.
- Is this calculator based on 2025/26 rates?
- Yes. This calculator uses the current 2025/26 UK tax year rates for income tax, National Insurance and other deductions, effective from 6 April 2025.
- Does this include pension contributions?
- This calculator can factor in workplace pension contributions. Under auto-enrolment, the minimum is 8% total (5% employee + 3% employer) of qualifying earnings.