Umbrella Company Take-Home Pay Calculator

Umbrella Company Calculator 2025 | Free Take-Home Pay Calculator UK

Calculate your exact take-home pay when working through an umbrella company. Our calculator includes all 2025/26 tax rates, Employer's NI (13.8%), Apprenticeship Levy (0.5%), and shows you:

✓ Monthly and yearly take-home
✓ Retention rate (what % you keep)
✓ Effective day rate (real earnings)
✓ Complete tax breakdown

Accuracy: Tested using 2025/26 HMRC tax rates and regulations.

Your Rate

Rate Type

Hours per Day

Days per Week

Weeks per Year

46 weeks accounts for holidays and between-contract gaps.

Using defaults: £110 umbrella fee, 5% pension, £500 expenses/month

Advanced Options

Umbrella Fee (£/month)

Typical range: £80-150 per month.

Pension Contribution (%)

Auto-enrolled workplace pension. Typical: 3-5%. Set to 0 if opted out.

Business Expenses (£/month)

Limited company only: travel, equipment, software, etc.

Include VAT Flat Rate Scheme Limited company only

+1.5% profit boost if you're VAT registered (£90k-£230k turnover). FRS lets you keep the difference between what you charge clients (20% VAT) and what you pay HMRC (typically 14.5% for IT contractors).
Note: Automatically disabled if turnover exceeds £230k.

Your Take-Home Pay

Monthly Take-Home

—

Retention Rate

—

Effective Day Rate

—

Yearly Total

—

Based on 2025/26 tax rates. Umbrella companies must pay Employer's NI and Apprenticeship Levy from your contract value.
Description	Monthly	Yearly

Umbrella vs Limited Company

Here's how umbrella compares to running your own limited company (outside IR35):

Umbrella Company

£0

0% retention rate

✓ No admin hassle
✓ No accountancy needed
✓ Works inside IR35

Limited Company

£0

0% retention rate

More admin work
Accountant needed
Outside IR35 only

Monthly Difference:

+£0

(£0/year extra with limited company)

Important: Limited company is ONLY suitable if your contract is outside IR35. If inside IR35, use an umbrella company.

Limited Company Calculation Assumptions

Our limited company calculator assumes:

Optimal Salary: £12,570/year (equal to personal allowance) - no income tax or employee NI paid on salary
Dividend Strategy: Remaining profits paid as dividends (most tax-efficient method outside IR35)
Corporation Tax: 25% on profits over £50,000; 19% on profits under £50,000 (2025/26 rates)
Dividend Tax:
- £500 dividend allowance (tax-free)
- 8.75% on basic rate band (up to £37,700 above personal allowance)
- 33.75% on higher rate band (£37,701 to £112,570)
- 39.35% on additional rate band (above £112,570)
Accountancy Fees: £150/month (£1,800/year) for contractor accountant
Business Expenses: Adjustable via calculator (default £900/month for travel, equipment, software, etc.)
VAT Flat Rate Scheme: Optional toggle adds ~1.5% profit margin (typical FRS benefit)
Outside IR35: Only applicable if your contract is genuinely outside IR35 (you take business risk, no supervision, direction or control)

Note: Limited company involves more admin, accountancy costs, Companies House filing, annual accounts, and IR35 risk assessment. Always consult with a qualified contractor accountant.

Looking for a Reliable Umbrella Company?

Our partner umbrella company Contractor Umbrella is FCSA-certified and trusted by thousands of UK contractors.

View Our Umbrella Company Partner →

Need a Mortgage as an Umbrella Contractor?

Getting a mortgage as an umbrella contractor can be challenging. Many high street lenders don't understand umbrella employment structures, making it harder to secure a mortgage. Our specialist umbrella mortgage partner Freelancer Financials can find suitable mortgage options based on your contract day rate alone.

Umbrella Mortgage Guide →

How the Umbrella Calculator Works

When you work through an umbrella company, your contract rate (e.g. £400/day) isn't all yours. Here's what happens:

2025/26 Tax Year

What Comes Out of Your Contract Rate?

Contract Value: Your day rate × days worked × weeks = yearly contract value
Umbrella Fee: The umbrella company's margin (£80-150/month) comes off FIRST
Assignment Rate: Contract value minus umbrella fee = the amount used to calculate employer costs
Employer's National Insurance (13.8%): The umbrella must pay this from your assignment rate. Applied on earnings above £9,100/year.
Apprenticeship Levy (0.5%): Another employer cost, calculated on assignment rate.
Your Gross Salary: What's left after all employer costs = what you're paid BEFORE your deductions.
Income Tax: You pay 20% on earnings above £12,570/year (personal allowance), 40% above £50,270, and 45% above £125,140.
Employee National Insurance: 12% on earnings above £12,570, then 2% above £50,270.
Take-Home: What finally lands in your bank account.

This is why your take-home is typically 60-65% of your contract value with an umbrella company.

Umbrella Take-Home Examples

Quick reference for monthly take-home pay using current inputs (5 days/week, 46 weeks/year, £110/month umbrella fee).

Day Rate	Monthly Take-Home	Retention %	Copy