Answers · UK 2025/26

What is my take-home through an umbrella company on a £450 day rate in 2026/27?

On a £450 day rate through an umbrella over about 220 days, your assignment income is roughly £99,000. 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 £58,000 to £62,000 a year.

Last updated: 7 June 2026Last reviewed: 7 June 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 £450 day rate over about 220 days, assignment income is roughly £99,000. From this the umbrella deducts its weekly or monthly margin (often £15 to £30 a week), employer National Insurance at 15% on pay above £5,000, the Apprenticeship Levy at 0.5%, and employer pension contributions if you have a workplace pension. What remains is your gross taxable salary, on which you pay Income Tax (20% then 40% above £50,270) and employee National Insurance at 8% then 2%. Because the employer costs are funded from the assignment rate, take-home is lower than a naive 60% of the day rate suggests, typically landing around £58,000 to £62,000 a year, depending on the margin, pension and holiday pay treatment. Holiday pay is usually rolled into the rate, so check whether it is included or paid separately. Salary sacrifice into the umbrella's pension is very 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, which by law must show the assignment rate, all deductions and your expected take-home. Use the take-home pay calculator to model the salary after umbrella deductions and pension.