Umbrella Company Calculator 2026/27
Your day rate is not your pay. See the full deduction waterfall — margin, employer National Insurance, levy and pension — then tax, NI and student loan on what is left. Nothing you enter leaves your browser.
- Rates: GOV.UK — checked 5 Nov 2026
- Tested against HMRC worked examples
- Your salary never leaves your browser
220 days is about 44 working weeks.
Typically £15–£30 a week.
Auto-enrolment minimum is 3% of qualifying earnings.
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Your take-home pay
— / year
- Per month
- —
- Gross pay
- —
- Assignment income
- —
| Assignment income | — |
|---|---|
| Umbrella margin | — |
| Employer National Insurance (15%) | — |
| Apprenticeship Levy (0.5%) | — |
| Employer pension | — |
| Gross pay | — |
| Income tax | — |
| Employee National Insurance | — |
| Student loan | — |
| Take-home pay | — |
Your gross pay, split — income tax, National Insurance, student loan and take-home.
Rates checked 5 November 2026.
Every figure checked against HMRC's own examples.
Your salary never leaves your browser.
Rates re-checked by hand after every Budget.
Rates: GOV.UK — last checked 5 November 2026 See the official rates
How this is calculated
Assignment income is your day rate × days worked. The umbrella margin comes off first, then the employment costs that are percentages of your gross pay — employer National Insurance at 15% above the £5,000 secondary threshold, the Apprenticeship Levy at 0.5% where the umbrella applies it, and employer pension on qualifying earnings (£6,240–£50,270). Because those costs depend on the gross pay itself, the gross is solved so the waterfall reconciles exactly. Your gross pay then runs through the normal engine: income tax on pay above the £12,570 personal allowance, employee National Insurance at 8% to £50,270 then 2%, and student loan above your plan threshold. Figures use the 2026/27 rates, last checked against GOV.UK on 5 November 2026. See the full method on How we calculate.
Example — £500 a day, 220 days, £25 a week margin
| Line | Amount / year |
|---|---|
| Assignment income (£500 × 220 days) | £110,000.00 |
| Umbrella margin (£25 × 44 weeks) | −£1,100.00 |
| Employer National Insurance (15% above £5,000) | −£13,379.88 |
| Employer pension (3% of qualifying earnings) | −£1,320.90 |
| Gross pay | £94,199.22 |
| Income tax + employee NI (no loan, no pension) | −£29,006.27 |
| Take-home pay | £65,192.95 |
The employer costs take £14,700.78 off the assignment income before your gross pay is even worked out — that is why a £500 day rate does not feel like a £110,000 salary. The calculator above reproduces this example live; change any input and the waterfall re-solves.
Related calculators & reading
- Umbrella companies, explained: where every deduction goes — the full explainer behind this tool.
- IR35 calculator — inside vs outside, side by side with numbers.
- Self-employed tax calculator — the sole-trader alternative to umbrella or limited company.
- UK tax rates 2026/27 — every band, threshold and allowance behind these figures.
Questions
How does an umbrella company pay me?
The end client pays your assignment rate to the umbrella company. The umbrella takes its margin, then deducts the employment costs that sit on your gross pay — employer National Insurance, the Apprenticeship Levy where it applies, and employer pension — and what is left is your gross pay. Income tax, employee National Insurance and student loan then come off that gross pay, exactly as on a normal payslip.
Why is my umbrella take-home so much lower than my day rate?
Because the day rate has to cover two sets of deductions most people only see one of: the employer costs (employer NI at 15%, pension, sometimes the levy) come off before your gross pay is even worked out, and then your own tax, NI and student loan come off that. On a £500 day rate the employer costs alone are roughly £70 a day. This calculator shows every line so nothing is hidden.
What is the umbrella margin?
The umbrella company's fee for running your payroll — typically £15 to £30 a week, sometimes charged per payslip. It is the one deduction the umbrella keeps for itself; the rest is tax and National Insurance that goes to HMRC. Always compare umbrellas on the margin and on the take-home figure, not on the headline rate.
What is the Apprenticeship Levy doing on my payslip?
The Apprenticeship Levy is 0.5% of an employer's pay bill above a £3 million threshold, with a £15,000 allowance — most umbrellas pass a share of it into the deduction chain. Some do not charge it at all. The toggle above lets you see your take-home with and without it; the difference is small, but it should be itemised, not buried.
Is my information sent anywhere?
No. The calculator runs entirely in your browser. Nothing you enter is sent to a server, stored, or shared.
The rates behind this calculator: 2026/27 rates, sourced from GOV.UK.