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• Umbrella Company Pay Calculator 2024/25

Umbrella Take Home Pay Calculator

Calculate how much salary you can take home with our umbrella take-home pay calculator. Instantly estimate your net pay and get a detailed breakdown of your income when working through an umbrella company. See exactly how much you’ll take home — quickly and easily.

There is also a tool developed by HM Revenue & Customs (HMRC) that works out gross and net pay if you're a worker or employment business using an umbrella company.

How Our Umbrella Calculator Calculates Your Take-Home Pay

When you input your assignment rate, working hours/days, and the umbrella margin into our calculator, the calculation is performed through the following steps:

1. Calculation of Assignment Rate:
   • Multiply your hourly rate by your working hours
   • This is the total amount the umbrella company receives
2. Deductions from Assignment Rate:
   Next, the following costs are subtracted to arrive at your Taxable Gross Pay:
   • Employer’s NIC: 13.8% on earnings above the threshold
   • Apprenticeship Levy: 0.5% of the total assignment rate
   • Employer’s Pension Contributions: 3% if you are enrolled in the Workplace Pension Scheme
   • Umbrella Company Margin: A fixed fee charged by the umbrella company
3. Deductions from Taxable Gross Pay:
   Next, employee deductions are applied to calculate your Net Pay:
   • PAYE (Income Tax): For the 2024/25 tax year, the following rates apply:
     • Basic rate – 20% on earnings up to £37,700
     • Higher rate – 40% on earnings between £37,701 and £125,140
     • Additional rate – 45% on earnings above £125,140
   • Employee’s National Insurance Contributions (NICs):
     • 8% on earnings above the primary threshold of £12,570
     • 2% on earnings above the upper threshold of £50,270
   • Employee Pension: 5% if you are enrolled in the Workplace Pension Scheme
   • Student Loan: Based on your earnings and repayment plan, if applicable
4. Final Step:
   • After all these deductions, the remaining amount is your Net Pay, the money that is deposited into your bank account.

If you have any questions or doubts, you can book a slot for a free consultation to understand your umbrella take-home pay. Use the form below to schedule your free consultation.