Umbrella company calculator 2026/27
Your assignment rate is not your salary. This shows every deduction between the rate the agency quotes and the money that reaches your account.
Holiday pay is assumed rolled up in the rate. Employer costs are charged from the assignment income, not from your salary — but they come out of the same pot.
| Assignment income (year) | |
| Umbrella margin | |
| Employer NI (15% above £5,000) | |
| Apprenticeship levy (0.5%) | |
| Employer pension | |
| Your gross salary | |
| Income tax (PAYE) | |
| Employee NI | |
| Employee pension | |
| Net pay (year) | |
| Take-home as % of assignment income |
Read: umbrella vs limited company →
Assumes tax code 1257L, no student loan, England/Wales/NI bands, employer NI charged on annual earnings above the secondary threshold with no Employment Allowance (umbrellas generally cannot claim it). Not tax advice.
Frequently asked questions
Why is my umbrella take-home so much lower than my day rate?
The assignment rate has to cover the umbrella's margin, employer National Insurance (15% above £5,000 a year) and the 0.5% apprenticeship levy before your gross pay is worked out, and then income tax and employee NI are deducted like any employee.
What is a fair umbrella margin?
£15–£25 a week is typical. Anything charged as a percentage of your rate, or extra fees for 'same day' payment, deserves a second look.
Can an umbrella company pay me a pension?
Yes: most umbrellas offer salary sacrifice into a pension, which reduces income tax, employee NI and the employer NI taken from your rate — often the single biggest saving available inside IR35.