Umbrella company net take home pay calculator

umbrella company take home pay calculator

The Contract Eye Umbrella Company Calculator provides an accurate breakdown of deductions and taxes from your umbrella company assignment rate. How much will your net take home pay be?

How to use the Umbrella Company Calculator

Our easy-to-use calculator allows you to estimate your take-home pay when working through an umbrella company.

Simply enter your assignment rate, pay frequency, hours worked, umbrella margin, and student loan details (if applicable).

The calculator will then provide a detailed breakdown of your payslip deductions and your net take home pay.

Please scroll down for some important notes and assumptions.

Umbrella Company Calculator (2023/24 tax year)

Umbrella Company Special Offers

You will typically notice small differences in the calculations provided by online umbrella calculators as there are several other input and output variables involved.

Although we’ve taken great care with our calculations, please make sure you ask prospective umbrella providers for a personalised illustration.

As the umbrella industry is unregulated, we recommend you read this guide to online tools which check that the deductions from your payslips are correct.

Assumptions used in this calculator

  • Holiday pay has been calculated at 12.07% of your assignment rate, as per statutory requirements.
  • For weekly calculations, we have assumed you will work 48 weeks out of 52 weeks in a year. This takes into account bank holidays and potential days off.
  • For monthly calculations, we have used the average number of working days per month, which equates to 21.66 days. This is based on working 52 weeks per year divided by 12 months and 5 working days per week.
  • The employer’s National Insurance Contributions have been set at the current rate of 13.8% of earnings above the secondary threshold.
  • The employee’s National Insurance Contributions have been set at 12% of earnings above the primary threshold and 2% above the upper earnings limit. The main rate was cut from 12% to 10% on 6th January 2024. This change is not reflected in our calculations. The calculator will be next updated from 6th April 2024 to reflect this.
  • The personal tax allowance taper for earnings over £100,000 has not been factored in. For every £2 earned above this threshold, £1 of the tax-free allowance is lost.
  • Pension contributions have not been included in the calculator. This is because umbrella employees often opt-out as they are contracted short-term. If opting in, employee and employer contributions need to be deducted.

Further advice when choosing an umbrella company

  • Understand the fee structure – Get clarity on weekly or monthly fees, any hidden fees, and if there are exit penalties for leaving the scheme early.
  • Check that the umbrella is fully compliant – Choose a PAYE scheme that deducts the correct taxes to remain compliant. Differences in take-home pay between providers should only be due to fees.
  • Is the umbrella a member of the FCSA and/or Professional Passport?
  • Ask colleagues for recommendations – Get insights from contractors already using umbrella companies about reputable providers.
  • Speak to an umbrella company representative – Have a conversation to get a feel for company culture and service levels before signing up.
  • Remember that you can switch providers – If an umbrella does not meet expectations, you can switch to a new provider.
  • Make sure you only choose a compliant UK-based PAYE umbrella and avoid non-compliant tax avoidance schemes.