Umbrella Company Calculator 2026/2027

  • Day rate × working days = annual contract value paid to the umbrella.
  • Umbrella deducts its weekly margin, then employer NI (15%) and Apprenticeship Levy (0.5%) before paying you PAYE.
  • Holiday pay accrual (statutory 12.07%) is treated as already included in your PAYE-taxable salary.
Umbrella Company

For contractors paid via an umbrella company. Models the «assignment rate → salary » uplift: contract value minus margin, employer NI and Apprenticeship Levy, with the remainder run through standard PAYE on an annual basis.

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How this umbrella company calculator works

Enter your agreed day rate and the number of days worked. The calculator deducts the umbrella company's margin, then employer National Insurance and the Apprenticeship Levy from the assignment rate to arrive at your gross employment income — which is then taxed as PAYE salary with income tax and employee NI applied in the normal way.

Unlike a limited company structure, an umbrella contractor has no control over the employer NI split: it comes off the top before income tax is calculated. This is why the same day rate produces a lower take-home inside IR35 via an umbrella than it would outside IR35 via a limited company drawing salary and dividends.

Use the IR35 calculator to compare the umbrella and limited company routes side by side for your specific day rate and working pattern.