Answers · UK 2025/26

What is my take-home through an umbrella company on a £600 day rate in 2026/27?

On a £600 day rate through an umbrella over about 220 days, your assignment income is roughly £132,000. 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 £70,000 to £72,000 a year.

Last updated: 3 July 2026Last reviewed: 3 July 2026How we verify

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An umbrella company employs you and runs your pay through PAYE, 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 £600 day rate over about 220 days, assignment income is roughly £132,000. 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, leaving a gross taxable salary that is likely to exceed £100,000 -- the point at which the Personal Allowance begins to taper. On that gross salary you pay Income Tax at 20% and 40% and employee National Insurance at 8% and 2%, with take-home landing around £70,000 to £72,000 a year, depending on the margin, pension and holiday pay treatment. Because the gross salary at this rate typically falls inside the £100,000-£125,140 Personal Allowance taper band, salary sacrifice into the umbrella's pension is especially valuable here, as it reduces Income Tax and National Insurance while also helping to restore the tapered Personal Allowance. 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.