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Umbrella vs PAYE Calculator
Enter an assignment rate to compare a worker's weekly take-home pay under an umbrella company versus agency PAYE, deduction by deduction.
Free · No signup · Nothing sent to a serverAssignment details
£
£
Costs to include
PAYE take-home£507.95
per week
Umbrella take-home£493.81
per week
| Deduction | PAYE | Umbrella |
|---|---|---|
| Assignment rate (weekly) | £750.00 | £750.00 |
| Employer's NI | −£82.80 | −£79.63 |
| Apprenticeship Levy | −£3.24 | −£3.14 |
| Employer pension (3%) | −£15.84 | −£15.21 |
| Umbrella margin | — | −£25.00 |
| Gross taxable pay | £648.12 | £627.02 |
| Employee NI | −£32.49 | −£30.80 |
| Income tax | −£81.28 | −£77.06 |
| Employee pension (5%) | −£26.41 | −£25.35 |
| Net take-home (per week) | £507.95 | £493.81 |
Estimates only, based on simplified 2025/26 NI, income tax and pension bands using a standard tax code. Doesn't account for student loan repayments, salary sacrifice or individual circumstances. Not tax advice, confirm final figures with your payroll provider, umbrella company or accountant.
Common questions
Umbrella vs PAYE questions
How this comparison works, and what it doesn't cover.
Why is umbrella take-home usually lower than PAYE at the same assignment rate?
Mainly the umbrella company's margin fee. Employer NI, the Apprenticeship Levy and pension contributions apply either way, an agency absorbs them under PAYE, an umbrella company deducts them from the assignment rate before paying the worker. The umbrella's fee sits on top of that, which is why the two numbers differ.
What is an umbrella company?
An umbrella company employs contractors on behalf of a recruitment agency. The agency pays the umbrella an assignment rate, the umbrella deducts employment costs and its own margin, then pays the contractor a salary through PAYE with payslips, tax and NI handled automatically.
Does this include student loan repayments or other deductions?
No. This is a simplified comparison of NI, income tax and pension only, using standard 2025/26 rates and a standard tax code. Student loan repayments, salary sacrifice schemes and other personal deductions would reduce both figures further.
How do I check my umbrella company is paying me correctly?
Ask for a full breakdown showing the assignment rate, employer NI, Apprenticeship Levy, margin and any pension deductions before tax. Be cautious of umbrella schemes offering unusually high take-home pay, HMRC treats these as a sign of disguised remuneration or a 'mini umbrella company' scheme, and it's the worker who ends up with the tax bill.
Should I choose PAYE or umbrella?
It depends on your situation. Agency PAYE is simpler and usually nets more per assignment. Umbrella can suit contractors moving between multiple agencies or assignments, since continuous employment history and holiday accrual carry over between clients. Neither affects your IR35 status, that's determined by the assignment itself.
Running PAYE in-house instead of pushing every temp through an umbrella? TempAlly handles timesheets, pay and bill automatically, so PAYE is no more admin than umbrella.
