Our calculator will help work out your net take-home pay with a compliant PAYE umbrella company.
How to use the calculator
Simply enter your rate of pay, payment frequency, the number of days you work in a week, plus the umbrella company’s margin.
Once you have entered your information, scroll down and see what your expected take-home pay retention is with an umbrella company.
You will also see all of the deductions you should expect to see on your payslip, including:
- Employers’ NICs (read why this is deducted)
- Apprenticeship Levy
- Umbrella company margin
- Employees’ NICs
- Income Tax
- Student Loan Repayments (if applicable)
This calculator has made a few important assumptions. Please scroll down for more details.
For a collection of helpful umbrella company guides, please click here.
Umbrella Company Tax Calculator
Looking for an umbrella company?
- Umbrella Company UK – £12/week special offer for our visitors. FCSA accredited
- Churchill Knight Umbrella – £12/week offer, vastly experienced team. FCSA accredited.
Assumptions used in this umbrella company calculator
The calculator is designed to be accurate but is for illustration purposes only.
The calculator takes the following into account:
- 1257L Week 1 / Month 1 tax code and Class 1 National Insurance.
- Holiday pay is calculated at 12.07% of the assignment rate.
- Weekly calculations are based on you working 48 weeks in a year (to take bank holidays and days off into consideration).
- Monthly calculations are based on 52 working weeks per full tax year. We have used this method because it creates a calculation using the average number of working days per month, which is 21.66 days (52 weeks ÷ 12 months x 5 days per week).
- Employer National Insurance Contributions – 13.8%.
- Employee National Insurance Contributions – 12%. Please note that this rate was cut to 10% from January 6th 2024 onwards. We have not included this in the calculator. The calculator will be updated for the 2024/5 tax year.
- For every £2 you earn over £100,000, you lose £1 of the tax-free personal allowance (often referred to as the £100,000 abatement). For technical reasons, this is not included in our calculator. Ask your provider for a precise tax breakdown if you earn above this threshold.
- You can include Student Loan repayments using the toggle above if you’re on Plan 1 (i.e. you started your course before 1st September 2012).
- Our umbrella company calculator does not include pension contributions. We have chosen to leave these out because contractors and freelancers typically use umbrella companies for short term assignments. Opting-out of pension contributions is a popular choice.
- For more information about how pensions work via an umbrella company, please read this article.
- For more information about umbrella company payslips, please read this article.
General advice for umbrella employees
- If you are interested in using an umbrella company for your payroll, request a tailored take-home pay calculation.
- Read our article on how to make sure the deductions on your payslip are legitimate.
- If you are using an umbrella company at the moment and have any queries about your pay, please contact your account manager.
- As an umbrella company employee, you are ultimately responsible for choosing a compliant umbrella company and paying the correct amounts of tax and NI.
- Therefore, ensure you undertake thorough due diligence and never be tempted to use a tax avoidance scheme (non-compliant umbrella company) because the consequences could be severe.