Umbrella take-home calculator
Umbrella take-home is what is left of a day-rate income after the umbrella's margin, employer National Insurance at 15% above a £5,000 secondary threshold, and the 0.5% Apprenticeship Levy, as set out in gov.uk's rates and thresholds for employers 2026 to 2027. Income tax and employee National Insurance then come off the resulting gross pay.
Where does the assignment rate go?
| Step | Who takes it | Amount |
|---|---|---|
| Assignment income | Paid to the umbrella | £77,000 |
| Umbrella margin | The umbrella | £1,300 |
| Employer NI (15%) | HMRC, funded from your rate | £9,179 |
| Apprenticeship Levy (0.5%) | HMRC, funded from your rate | £331 |
| Your gross pay | Includes holiday pay £7,129 | £66,190 |
| Income tax | HMRC | £13,908 |
| Employee NI | HMRC | £3,334 |
| Net take-home | You | £48,948 |
How is umbrella take-home worked out?
The number the agency quotes is the assignment rate, sometimes called the uplifted or limited company rate. It is deliberately higher than a salary because it has to cover the employer costs of putting a worker on a payroll. The umbrella takes its fixed margin first. What is left has to stretch across employer National Insurance at 15% on pay above the £5,000 secondary threshold, under gov.uk's rates and thresholds for employers. It also covers the 0.5% Apprenticeship Levy, and then gross pay itself. Only after that gross figure is set do income tax and employee National Insurance come off, exactly as they would for any employee.
Holiday pay is not a deduction, even though it looks like one on some payslips. It is 12.07% of worked time, which is the statutory 5.6 weeks expressed as a share of the weeks actually worked, under gov.uk's holiday entitlement rules. An umbrella either rolls it into each payment or holds it back until leave is taken.
How much of a £350 day rate do I keep?
Take a £350 day rate over 220 billable days, so £77,000 of assignment income. A £25-a-week margin removes £1,300. Employer NI and the levy take another £9,510, which sets gross pay at £66,190. Income tax and employee NI of £17,243 then leave an estimated £48,948 net, about £4,079 a month and 63.6% of where the assignment income started.
Common questions
Where does the assignment rate go?
The assignment rate is paid to the umbrella company, not to you. It first covers the umbrella's fixed margin, then employer National Insurance at 15% above the £5,000 secondary threshold, and the 0.5% Apprenticeship Levy. What remains becomes your gross pay, before income tax and employee National Insurance are deducted, as described in gov.uk's guidance on working through an umbrella company.
How is umbrella take-home worked out?
The umbrella deducts its margin and the employer costs from the assignment rate to fix your gross pay. Income tax and employee National Insurance are then calculated on that gross pay using the standard PAYE rules on gov.uk, in the same way as for any other employee. The remaining amount is the net pay that reaches your bank account.
Why does an umbrella deduct employer National Insurance from my pay?
Because the assignment rate the agency pays the umbrella is not your salary, it is the total cost of employing you. Employer NI at 15% above the £5,000 secondary threshold, plus the 0.5% Apprenticeship Levy, are the umbrella employer costs set out in gov.uk's rates and thresholds for employers. They come out of the assignment rate before any of it becomes your gross pay, so in practice you fund them.
Is the holiday pay an extra deduction?
No. Holiday pay is your own money. It is 12.07% of your worked hours, either paid each week (rolled up) or held back and paid when you take leave. This tool shows it inside your gross pay so you can see where it sits, not as a loss.
What is a fair umbrella margin?
The margin is the only part the umbrella actually keeps for running payroll. It is a fixed weekly or monthly fee, commonly £15 to £30 a week, not a percentage. Be wary of umbrellas that quote a percentage or bundle extra charges.
How much of a £350 day rate do I keep?
On a £350 day rate over 220 days, an umbrella leaves about £48,948 a year, roughly £4,079 a month. That is 63.6% of the £77,000 assignment income once the margin, employer NI, levy, income tax and employee NI are taken.
Would a limited company pay more?
Often yes, because a company avoids employer NI on your pay and lets you split salary and dividends. But it carries accountancy cost, more administration, and IR35 risk. Umbrella is simpler and fully PAYE. The day rate to salary tool helps you weigh it up.
Sources & Rate Verification
Rates verified against official statutory guidance on 6 September 2026.