UMBRELLA PAY · 2026/27
Umbrella take-home calculator
See how an assignment rate becomes taxable gross salary before PAYE deductions. It is a practical check for contractors who want to compare umbrella payroll with a limited-company or direct contract route.
Estimated annual take-home
- Assignment income
- £110,000
- Umbrella gross salary
- £95,261
- Employer NI from assignment
- £13,539
- Income Tax
- £25,536
- Employee NI
- £3,916
The assignment rate is not your gross salary. This estimate removes the umbrella margin and employer NI before PAYE. It excludes Apprenticeship Levy, holiday-pay timing, expenses and student loans.
What this calculator does
Use this to estimate how an umbrella assignment rate turns into gross salary and then take-home pay after employer costs and PAYE deductions. It helps you compare umbrella economics with contractor alternatives.
Worked example
An umbrella assignment rate is not the same as your gross salary. Before PAYE is applied, the umbrella may have to set aside employer NI, apprenticeship levy, margin and holiday pay, which means the final take-home is always lower than the headline assignment rate suggests.
Why the result can differ
Holiday pay, pension handling, umbrella margin, employer NI, apprenticeship levy and payroll reconciliation can all change the result. Different umbrellas may also treat deductions and pay timing differently.
SOURCES & REVIEW
Checked against official guidance
Last reviewed 1 September 2026 · Rule version GB-2026.27.1
Daily/weekly source monitoring. If a source changes, the affected rule set is reviewed before publication.
All source links are kept visible so you can verify the figures used on this page.
GOV.UK: Employer rates 2026/27 ↗GOV.UK: Working through an umbrella company ↗Sources, methodology and update policy →Report an issue or correction →WHY RESULTS DIFFER
Why two users can see different results
Why the result can differ
Different tax codes, payroll periods, Scottish bands, pension methods or lender assumptions can change the outcome.
One-off bonuses, pay frequency, overpayments, allowances and reliefs can move the result away from a simple annual estimate.
Where a rule depends on eligibility or legal status, this page shows an estimate and links to official guidance.
This section is intentionally repeated on key tools so the explanation stays near the result instead of being hidden in a separate policy page.
COMMON QUESTIONS
Frequently asked questions
Is the assignment rate my salary?
No. The umbrella normally meets employment costs and its margin from the assignment income before arriving at gross taxable pay.
Does this prove a payslip is correct?
No. Check the key information document, reconciliation statement and payslip because holiday pay, pension, levy and other items can differ.