Reviewed by Mustafa Bilgic
Founder, WebCalculator
Employer NI, the Apprenticeship Levy, Income Tax and employee NI follow HMRC rates for 2026/27. Margins vary by provider. Estimates only, not tax advice.
Working through an umbrella? Enter your day or hourly assignment rate and see exactly where the money goes — umbrella margin, employer NI, Apprenticeship Levy, then your own tax and NI — to reveal your real net pay.
Assignment rate → take-home
An umbrella company employs you and processes your pay through PAYE. The crucial point is that the rate the agency pays the umbrella — the assignment rate — is not your gross salary. The umbrella must first take its margin, then cover the employer's National Insurance (15% above the £5,000 secondary threshold) and the 0.5% Apprenticeship Levy. Only what remains becomes your taxable gross salary, from which your own Income Tax and NI come out.
| Deducted from the assignment rate | 2026/27 |
|---|---|
| Umbrella margin | ~£20–£30 / week |
| Employer National Insurance | 15% above £5,000 |
| Apprenticeship Levy | 0.5% |
| Employer pension (if applicable) | 3% min auto-enrol |
Inside IR35, umbrella is often the simplest compliant route. Outside IR35, a limited company usually wins on take-home thanks to salary plus dividends. Compare directly with the IR35 take-home calculator and the limited company take-home calculator.
Usually around 55–65% of the assignment rate, because that rate must first cover the margin, employer NI, the levy and pension before your own tax and NI.
The assignment rate isn't your salary — employer NI (15%), the 0.5% levy and the umbrella margin come off first.
Umbrella is simpler and often required inside IR35, but a limited company outside IR35 usually keeps more.
No — those are disguised remuneration schemes. A compliant umbrella applies full PAYE.