UK Umbrella Company Calculator | 2025 Tax Rates

Umbrella Companies

An umbrella company acts as an intermediary employer for contractors who work on temporary assignments. When working through an umbrella company, you become their employee while completing assignments for various end clients. The umbrella company handles all tax deductions, National Insurance contributions, and administrative tasks, allowing you to focus on your work.

The key benefit is simplicity - you don't need to manage your own limited company or handle complex tax affairs. However, it's important to understand how your pay is calculated to ensure you're receiving the correct amount and all appropriate deductions are being made.

Step 1: Enter Your Assignment Rate

Input your assignment rate (also known as the umbrella rate) and select whether it's an hourly or daily rate. This is the rate agreed with your employment agency or end client.

Step 2: Specify Your Working Pattern

Enter the number of hours you work per week (default is 40) and the number of days per week (default is 5). This helps calculate your weekly contract value accurately.

Step 3: Add Personal Details

Enter your tax code (default is 1257L) and pension contribution percentage. If you're unsure of your tax code, check your most recent payslip or use the default value.

Step 4: Set Umbrella Company Details

Enter the umbrella company fee and select whether it's charged weekly or monthly. Also choose whether your holiday pay is advanced (included in each payment) or retained (saved for when you take time off).

Step 5: Review Your Results

Click the "Calculate Take-Home Pay" button to see your estimated weekly, monthly, and annual take-home pay. The detailed breakdown shows all deductions and calculations, helping you understand exactly how your pay is determined.