Answers · UK 2025/26

What is my take-home through an umbrella company on a £400 day rate in 2026/27?

On a £400 day rate through an umbrella over about 220 days, your assignment income is roughly £88,000. After the umbrella deducts employer National Insurance, the Apprenticeship Levy, its margin, then your Income Tax and employee National Insurance, take-home is typically around £51,200 to £56,600 a year.

Last updated: 10 July 2026Last reviewed: 10 July 2026How we verify

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An umbrella company employs you and runs your pay through PAYE, which is common for inside-IR35 contracts. The day rate quoted to an umbrella is the assignment rate, out of which the umbrella must cover employment costs before working out your gross salary. On a £400 day rate over about 220 days, assignment income is roughly £88,000. From this the umbrella deducts its weekly or monthly margin (often £15 to £30 a week, roughly £1,200 a year), employer National Insurance at 15% on pay above £5,000, and the 0.5% Apprenticeship Levy, leaving a gross taxable salary of roughly £75,600, on which you pay Income Tax of about £17,700 and employee National Insurance of about £3,520. Because the employer costs are funded from the assignment rate rather than added on top, take-home is lower than a naive percentage-of-day-rate estimate suggests, typically landing around £51,200 to £56,600 a year depending on the margin and pension treatment. Holiday pay is usually rolled into the rate, so always check whether it is included or paid separately. Salary sacrifice into the umbrella's pension is efficient because it cuts both Income Tax and National Insurance and avoids employer National Insurance on the sacrificed amount. Always compare the umbrella's key information document before accepting a contract. Use the take-home pay calculator to model the salary after umbrella deductions and pension.