Umbrella PAYE Calculator
Estimate your take-home pay as a UK contractor working through an umbrella company after all deductions including taxes, NI, and umbrella fees.
Understanding Umbrella PAYE
When you work through an umbrella company, they become your employer for tax purposes. Your agreed contract rate needs to cover:
- •Employer's National Insurance: Legally required, paid by the employer (the umbrella company) from the contract funds.
- •Apprenticeship Levy: A 0.5% tax on large employers' payrolls, usually passed on.
- •Umbrella Company Margin: Their fee for processing your payroll and providing employment rights.
- •Your Gross Pay: The amount left after the above deductions, which is then subject to Income Tax, Employee's NI, and your pension contributions.
- •Holiday Pay: Usually calculated as 12.07% of your gross pay. It might be paid out weekly ('rolled-up') or accrued for you to take later. This calculator *includes* estimated holiday pay within the gross pay calculation (rolled-up approach).
This calculator provides an *estimate*. Your actual pay slip may differ slightly due to specific umbrella calculations, student loans, or other deductions.
This calculator is for informational purposes only.
It assumes standard tax codes and no other income sources.
Consult with the umbrella company or a financial advisor for precise figures.
Frequently Asked Questions
- What is an Umbrella PAYE Calculator?
- An Umbrella PAYE Calculator is a tool that helps contractors estimate their take-home pay when working through an umbrella company. It considers taxes, National Insurance contributions, and umbrella company fees to give a realistic view of net earnings.
- Who should use an Umbrella PAYE Calculator?
- Contractors and freelancers in the UK who are employed by an umbrella company can use an Umbrella PAYE Calculator. It's useful for understanding your expected earnings after all statutory deductions and fees.
- How does the Umbrella PAYE Calculator work?
- You input your hourly or daily rate, expected working days or hours, and the calculator estimates your gross and net income. It factors in income tax, employee National Insurance, employer National Insurance, the Apprenticeship Levy, and the umbrella company margin.
- What deductions does the Umbrella PAYE Calculator include?
- The calculator includes all mandatory deductions such as income tax, employee National Insurance, employer National Insurance, the Apprenticeship Levy, and a typical umbrella company margin or fee. It provides a breakdown so you can see where your money goes.
- Is this Umbrella PAYE Calculator accurate?
- Yes, our Umbrella PAYE Calculator is based on current UK tax rates and rules for the current tax year. While it's a great estimate, your final take-home pay may vary depending on your personal tax code and any additional deductions or benefits.
- Can I compare umbrella vs. limited company using this calculator?
- No, this calculator is specifically designed for umbrella PAYE scenarios. If you want to compare umbrella vs. limited company take-home pay, we recommend using a dedicated comparison tool that includes IR35 status, dividend tax, and corporation tax.
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