Use this free umbrella company take-home pay calculator to estimate how much of your assignment income may reach your bank account. It works from an hourly or daily contract rate and shows the umbrella margin, employer costs, gross taxable pay, PAYE Income Tax, National Insurance and optional student loan deductions.
Use the rate paid by the agency or end client to the umbrella company, not the lower taxable gross salary shown on a payslip.
The result separates costs funded from the assignment income from deductions taken from your gross taxable pay.
Check the assignment rate, units worked and umbrella margin, then select “Calculate take-home pay”.
Assignment income and employment costs
Deductions from gross taxable pay
This is an annualised estimate using a standard 1257L tax code. Actual payroll can differ because PAYE is cumulative and individual circumstances vary.
Your hourly or daily assignment rate is not the same as your taxable salary. The agency normally pays the full assignment income to the umbrella company. The umbrella then uses that income to fund its margin and the employment costs connected with paying you before arriving at your gross taxable pay.
Umbrella payroll is affected by your tax code, tax paid earlier in the year, irregular pay, holiday pay arrangements, pension contributions, student loan notices, expenses and other payroll adjustments. Your umbrella may also charge its margin weekly, monthly or only when it processes a payment. Use this calculator as a planning estimate and compare the result with the umbrella company’s personalised illustration and Key Information Document.
Review umbrella margins, accreditations, service features and contractor support before choosing a provider.