Umbrella pay calculator
Use this umbrella pay calculator to estimate your take-home pay through an umbrella company. Enter the rate your agency pays and your umbrella's fee, and see how it turns into gross pay and net pay, step by step. This umbrella company calculator uses 2026/27 tax rules and the figures you enter, so check them against your own key information document.
Rules last checked 13 October 2026. Tax year 2026/27.
Rate type
Enter the rate your agency pays your umbrella company for your work. This is often called the assignment rate. It is usually higher than the rate you are offered because it includes your umbrella's costs.
You entered no fee. Check your key information document for the real figure.
Umbrella companies charge a margin (fee) each time they process your pay. It should be in your contract and shown on your payslip, reconciliation statement or pay statement.
Any other costs shown in your key information document or reconciliation statement.
If you are eligible, your umbrella must automatically enrol you in a workplace pension. Enter the employer rate shown in your key information document or payslip.
Enter the employee rate shown on your payslip.
Only used to split your gross pay into basic pay and rolled-up holiday pay. 12.07% is the statutory accrual rate for workers with irregular hours on GOV.UK. Your payslip shows your umbrella's figure.
Enter your day rate to see your estimated take-home pay.
Nothing you enter leaves your device. This is an estimate, not tax advice. Your payslip and key information document show your actual pay.
How umbrella company pay works
As an employee of an umbrella company, you have the same employment rights as other employees, including the right to a written employment contract. Your umbrella company deducts Income Tax, employee National Insurance and your employee workplace pension contribution from your gross pay.
The rate your agency pays is usually higher than your gross pay, because it includes the umbrella company's operating costs, often called margin, and employer National Insurance.
From assignment rate to take-home pay
- Your agency pays the umbrella company the assignment rate.
- The umbrella company takes its margin and any other costs.
- Employer National Insurance (15% of pay above £417 a month) and any employer pension are taken to work out your gross pay.
- Your own pension, Income Tax and employee National Insurance come out of your gross pay to give your net pay.
GOV.UK gives a payslip example: 37 hours at £18.89 an hour gives basic pay of £698.93, plus £84.16 of holiday pay, for total gross pay of £783.09. Deductions of £108.24 PAYE tax, £43.29 National Insurance and £26.53 pension total £178.06, leaving £605.03. GOV.UK says the £18.89 was reduced from a £25 assignment rate due to company costs and holiday pay.
Take-home pay at common day rates
| Day rate | Rate per month | Gross pay per month | Take-home per month | Take-home per year |
|---|---|---|---|---|
| £150.00 | £3,250.00 | £2,786.28 | £2,299.46 | £27,593.50 |
| £200.00 | £4,333.33 | £3,728.30 | £2,977.72 | £35,732.63 |
| £250.00 | £5,416.67 | £4,670.33 | £3,588.63 | £43,063.52 |
| £300.00 | £6,500.00 | £5,612.36 | £4,135.00 | £49,620.04 |
| £350.00 | £7,583.33 | £6,554.39 | £4,681.38 | £56,176.56 |
| £400.00 | £8,666.67 | £7,496.42 | £5,227.76 | £62,733.09 |
| £500.00 | £10,833.33 | £9,380.48 | £6,111.08 | £73,332.98 |
Assumes 5 days a week, an example umbrella fee of £25 a week (not a typical fee), no other costs, no pension, and 2026/27 tax rules for England, Wales and Northern Ireland. Your own figures will differ.
Umbrella company margin and fees
Umbrella companies charge a margin (fee) each time they process your pay. It should be in your contract and shown on your payslip, reconciliation statement or pay statement.
The advertised rate usually includes the umbrella company's operating costs, so your pay may be lower than the advertised rate. The fee does not contribute to your tax or National Insurance.
Holiday pay through an umbrella company
GOV.UK describes two methods. With rolled-up holiday pay, an additional amount is included in every payslip to cover holiday pay. With the other method, which uses a 52 week reference period, holiday pay is paid when you take leave.
Want to check your leave? Use the holiday pay calculator.
Pension through an umbrella company
Your employer must automatically enrol you into a workplace pension scheme if you are eligible. The deductions for this should appear on your payslip. The National Insurance and pension contributions taken from your gross pay should always be employee contributions, not employer.
Check your payslip
Check that the deduction amounts on your payslip match the amounts in your personal tax account, your student loan repayment account and your pension accounts. Review payslips when you get them and keep copies. If you do not understand a deduction, speak to your umbrella company.
Some deductions on a payslip might be grouped together, which can hide the true amount of tax and National Insurance.
Warning signs: if the money paid into your bank account is larger than the net pay on your payslip, or you are paid in separate payments that are not processed through PAYE, it may be tax avoidance. Do not ignore it.
April 2026 changes for umbrella companies
From 6 April 2026, HMRC can recover unpaid PAYE Income Tax and Class 1 National Insurance from a party higher in the labour supply chain, usually the agency that holds the contract with the end client, if an umbrella company in the chain does not pay it. This applies to payments made on or after 6 April 2026. Read the PAYE rules for labour supply chains on GOV.UK.
This does not change how this calculator works out your pay.
What this calculator does not include
- Student loan repayments.
- Expenses.
- Scottish income tax.
- Holiday pay held back until you take leave.
- Changes to your tax code.
- Benefits.
- Any fee, cost or percentage that you do not enter.
- The Employment Allowance and other employer reliefs.
Working extra hours? See what they are worth with the overtime calculator.
Frequently asked questions
How is umbrella company pay calculated?
Your agency pays the umbrella company an assignment rate. The umbrella takes its margin and employer National Insurance from that rate to work out your gross pay. It then deducts Income Tax, employee National Insurance and any employee pension contribution to give your net pay.
How much take-home pay will I get from an umbrella company?
It depends on your rate, the umbrella's fee and your pension. As an example, a day rate of £200 for 5 days a week with a £25 weekly fee and no pension gives about £2,977.72 a month after tax and National Insurance under 2026/27 rules.
What is the umbrella company margin?
It is the umbrella company's operating costs, charged each time it processes your pay. It should be in your contract and shown on your payslip, reconciliation statement or pay statement.
Why is my pay lower than the advertised rate?
The advertised rate usually includes the umbrella company's operating costs, such as its margin, as well as employer National Insurance. These are taken before your gross pay is worked out.
Do I pay employer National Insurance?
No. The umbrella company pays employer National Insurance, and it is normally taken from the assignment rate to work out your gross pay. The National Insurance taken from your gross pay should always be employee contributions, not employer.
Do umbrella workers get holiday pay?
Yes. GOV.UK describes two methods. Rolled-up holiday pay adds an amount to every payslip. The other method uses a 52 week reference period, and holiday pay is paid when you take leave.
Do umbrella companies pay into a pension?
Your employer must automatically enrol you into a workplace pension scheme if you are eligible. The deductions for this should appear on your payslip.
What changed for umbrella companies in April 2026?
From 6 April 2026, HMRC can recover unpaid PAYE Income Tax and Class 1 National Insurance from a party higher in the labour supply chain, usually the agency that holds the contract with the end client, if an umbrella company does not pay it.
Sources
Rules checked against these pages on 13 October 2026:
- GOV.UK: Working through an umbrella company
- GOV.UK: Check your payslip if you work through an umbrella company
- GOV.UK: PAYE rules for labour supply chains that include umbrella companies from 6 April 2026
- GOV.UK: Income Tax rates and Personal Allowances
- GOV.UK: National Insurance rates and categories
- GOV.UK: Holiday entitlement
- GOV.UK: Rates and thresholds for employers 2026 to 2027
Read how we keep calculators accurate, or browse all UK calculators.
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