Umbrella Company Pay Calculator

Find out how much salary you can take home with our umbrella pay calculator. Instantly estimate your net pay and receive a detailed income breakdown when working through an umbrella company. Discover exactly how much you’ll take home — quickly and effortlessly.

Calculator Assumptions

• Calculations are estimates and based on 1257L tax code
• Your Personal Allowance will reduce if you earn above £100,000 per year
• Advance Holiday Pay
• No expenses
• No Workplace pension
• You don’t have any earnings from other sources this tax year

How Your Umbrella Pay is Calculated

When you input your assignment rate, working hours/days, and the umbrella margin into our calculator, the calculation is performed through the following steps:

1. Calculation of Assignment Rate:
• Multiply your hourly rate by your working hours
• This is the total amount the umbrella company receives
2. Deductions from Assignment Rate:

Next, the following costs are subtracted to arrive at your Taxable Gross Pay:

• Employer’s NIC: 13.8% on earnings above the threshold
• Apprenticeship Levy: 0.5% of the total assignment rate
• Employer’s Pension Contributions: 3% if you are enrolled in the Workplace Pension Scheme
• Umbrella Company Margin: A fixed fee charged by the umbrella company
3. Deductions from Taxable Gross Pay:

Next, employee deductions are applied to calculate your Net Pay:

• PAYE (Income Tax): For the 2024/25 tax year, the following rates apply:
• Basic rate – 20% on earnings up to £37,700
• Higher rate – 40% on earnings between £37,701 and £125,140
• Additional rate – 45% on earnings above £125,140
• Employee’s National Insurance Contributions (NICs):
• 8% on earnings above the primary threshold of £12,570
• 2% on earnings above the upper threshold of £50,270
• Employee Pension: 5% if you are enrolled in the Workplace Pension Scheme
• Student Loan: Based on your earnings and repayment plan, if applicable
4. Final Step:
• After all these deductions, the remaining amount is your Net Pay, the money that is deposited into your bank account.

If you have any questions or doubts, you can book a slot for a free consultation to understand your umbrella take-home pay. Use the form below to schedule your free consultation.

Request a callback

Request a callback from an umbrella company expert if you need any help related to umbrella companies or even for a free take-home pay quote. Simply fill in the form below and we will get in touch with you.