Umbrella Pay Calculator
See your weekly or monthly take-home through an umbrella.
Umbrella pay isn’t your contract rate. Before income tax and employee NI, the umbrella deducts Employer’s NI, the apprenticeship levy and its own margin. This calculator shows the actual number that lands in your bank.
Last updated Written by Greg Hanton, Co-founder
Quick reference
What umbrella pay looks like in 2026/27.
Your assignment rate funds both employee and employer costs, in that order.
-
Personal allowance
£12,570
Tax-free on the first £12,570 of pay each year.
-
Basic rate tax
20%
Applies on pay between £12,570 and £50,270.
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Higher rate tax
40%
Applies on pay between £50,270 and £125,140.
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Employee NI
8% / 2%
8% main rate; 2% above the upper earnings limit.
-
Employer’s NI
15%
Deducted from your assignment rate before you’re paid.
-
Holiday pay
12.07%
Either paid each period or rolled up — always ask how yours is handled.
Figures are for the UK 2026/27 tax year. Individual circumstances will vary — talk to us for a tailored view, or see the full UK tax bands and rates.
Calculation result
Weekly net pay
£—
Umbrella side — before you’re paid
- Assignment rate (total billed)
- £—
- Employer’s NI
- −£—
- Apprenticeship Levy
- −£—
- Employer pension
- −£—
- Umbrella margin
- −£—
- Gross pay
- £—
Your payslip
- Gross pay
- £—
- PAYE income tax
- −£—
- Employee NI
- −£—
- Employee pension
- −£—
- Student loan
- −£—
- Postgrad loan
- −£—
- Weekly net pay
- £—
Personal allowance reduced. Earnings above £100,000 lose £1 of PA for every £2 over — fully gone by £125,140. We’ve tapered yours by £— per year. If your tax code already reflects this, your actual figures may differ slightly.
Want a higher take-home? On outside-IR35 contracts at a decent rate, a limited company will almost always net you more — we’ll model both side by side.
Book a free chat or call 020 7731 1117.
The method
How your umbrella pay is worked out.
Your assignment rate covers two sets of costs before it reaches you: what the umbrella company owes as your employer, then what you owe personally as an employee.
-
1
Start with your assignment rate. Your day or hour rate and the hours you work become the assignment rate the agency or end client pays your umbrella company.
-
2
Employer costs come off first. The umbrella deducts Employer’s National Insurance, the apprenticeship levy and an employer pension contribution if you have one, then takes its own margin. What’s left is your gross pay.
-
3
PAYE income tax and employee NI follow. Gross pay is taxed exactly like an employee’s salary, with income tax through PAYE and employee National Insurance contributions deducted next.
-
4
Student loan and pension come last. Any student loan repayment, postgraduate loan or personal pension contribution comes off next, and what’s left is your net pay for the period.
That’s exactly what this umbrella pay calculator does, for a weekly or monthly pay period, for the 2026/27 tax year.
Illustrative · 2026/27
A contractor billing £2,500 a week through an umbrella company:
- Assignment rate (weekly)
- £2,500.00
- − Employer’s NI
- £322.00
- − Apprenticeship Levy
- £12.50
- − Umbrella margin
- £25.00
- Gross pay
- £2,140.50
- − PAYE income tax
- £430.00
- − Employee NI
- £155.00
- Weekly net pay
- £1,555.50
Rounded for illustration and assumes no pension or student loan.
Pop your own rate into the umbrella calculator above for your own numbers.
Due diligence
What to check with your umbrella company.
Not every umbrella company operates the same way, and a little checking upfront saves problems later.
Ask for a full breakdown
A reliable umbrella company will show you exactly where your assignment rate goes, line by line, on every payslip. If a provider will not give you a full breakdown before you sign up, treat that as a warning sign.
Check who is responsible for what
The end client engages the agency, and the agency pays your umbrella company the assignment rate, with the umbrella taking on the employment costs and payroll from there. HMRC can, in some circumstances, hold parties jointly and severally liable if an umbrella company gets things wrong, so accreditations like Cyber Essentials are worth checking.
Understand your pay period
Whether you are paid weekly or monthly changes how your tax-free personal allowance is spread across the year, which is why the calculator lets you pick your pay period. It will not change your total take-home over a year, just how it is timed.
Three things to check before you sign.
Umbrella is the fastest route in, but the details matter.
Ask about holiday pay
Rolled-up holiday can be withheld until you take leave — or quietly kept by the umbrella if you don’t. Always confirm how it’s handled.
Beware off-payroll schemes
If a “non-PAYE” or “elective deduction” scheme promises 80–90% take-home, walk away. HMRC will eventually come knocking.
Compare vs limited company
On outside-IR35 contracts at a decent day rate, running a limited company almost always takes home more. We’ll model both for you.
Umbrella pay FAQs
Umbrella pay questions, answered.
The things contractors ask us most about umbrella take-home pay in 2026/27.
What is an umbrella company?
An umbrella company employs you on a PAYE basis for the length of your assignment, invoicing the agency or end client for your work and paying you a salary after employer costs, its margin, tax and National Insurance. It is the simplest way to work through an agency without setting up your own limited company.
How is umbrella pay calculated?
Start with your assignment rate, deduct Employer’s National Insurance, the apprenticeship levy and the umbrella’s margin to reach your gross pay, then deduct PAYE income tax and employee National Insurance to reach your net pay. Our umbrella pay calculator runs this instantly.
What is an umbrella margin?
The umbrella margin is the fee the umbrella company keeps for running your payroll, usually a fixed weekly or monthly amount rather than a percentage. It is taken from your assignment rate before Employer’s National Insurance and PAYE are calculated.
Do I pay Employer’s National Insurance through an umbrella?
Yes, indirectly. Even though you’re paid on PAYE like an employee, your assignment rate has to cover the Employer’s National Insurance and apprenticeship levy the umbrella company must pay on your behalf, so both come off before you see your gross pay.
How much take-home pay will I get through an umbrella?
It depends on your assignment rate, but most umbrella workers keep somewhere around 60–65% of their day or hour rate after all employer and employee deductions. Enter your rate in the calculator above for your exact figure.
Is umbrella pay the same as a limited company take-home?
No, usually lower. A limited company lets you split income between a tax-efficient salary and dividends, whereas umbrella pay is taxed in full as employment income. Our contractor take-home pay calculator lets you compare both routes on the same rate.
How do I know if my umbrella company is reliable?
Look for a full, itemised payslip breakdown, membership of a recognised compliance scheme such as Cyber Essentials, and a willingness to explain exactly how your margin and deductions work before you sign up. Be wary of any umbrella promising take-home pay well above the norm.
Does this umbrella calculator include student loan and pension?
Yes, you can add a student loan plan, a postgraduate loan and employee or employer pension contributions, and the calculator will factor them into your net pay for either a weekly or monthly pay period.
Is this umbrella pay calculator up to date for 2026/27?
Yes, it uses the 2026/27 income tax bands, employee and Employer’s National Insurance rates, and apprenticeship levy. The figures are illustrative, and your own umbrella’s margin and policies can change the result, so check your payslip breakdown directly with them.
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UK Tax Bands & Rates
This year’s income tax, dividend, NI and CGT rates in one place.
Still not sure?
Let’s talk it through.
A calculator gives you the numbers. A five-minute call with us gives you the context. No sales pitch — just a clear answer.
Prefer to talk? Call us on 020 7731 1117