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.
2023/24 Umbrella Company Calculator
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%.
- 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.