Umbrella Company Calculator
See your real take home pay when working through an umbrella company.
How Umbrella Companies Work
An umbrella company employs you on behalf of the end client. Your day rate goes to the umbrella, which deducts its margin, employer NI, and then pays you as an employee via PAYE. You receive a payslip just like a normal employee.
Why Is Take Home So Low?
The key difference is employer NI (15%). In a normal job, your employer pays this invisibly. With an umbrella, it comes out of your agreed rate. This is why umbrella take home is always lower than you might expect. Compare with IR35 inside/outside.
What This Calculator Does
This calculator shows your take-home pay through an umbrella company, after deducting Employer NI, Employee NI, income tax, and the umbrella margin. It is designed for contractors and temporary workers using or considering an umbrella company.
How the Calculation Works
Your agency pays the umbrella company, which becomes your employer. The umbrella deducts its margin (£20-30/week typically), Employer NI (13.8%), then pays you a salary minus income tax and Employee NI. Holiday pay is usually accrued at 12.07%.
Common Scenarios
On a £400/day rate (20 days/month), an umbrella take-home is roughly £5,200/month after all deductions. This is less than outside-IR35 limited company contracting but avoids the administrative burden and IR35 risk.
Related Calculators
You might also find these useful: Ir35, Contractor Vs Permanent, Self Employed. Or use our main salary calculator for a complete take-home pay breakdown.