Rate to Reality.co.uk

Your day rate isn't your pay. See the reality.

An honest umbrella company take-home calculator for 2026/27. Every deduction shown, nothing gated, no email wall — compare umbrella margins side by side and see exactly what lands in your account.

2026/27 tax year No sign-up, no email All student loan plans Scotland & Wales Margin comparison

Your assignment

▶ Tax, pension & deductions
S-prefix = Scottish rates · C-prefix = Welsh · BR/D0/D1 supported
12.07% of gross. Rolled-up is paid each period; accrued is held back for when you take leave.
Compare margins
Put 2–3 umbrellas head to head
You take home
£0 / month
You keep 0% of your assignment rate healthy
Rate → reality
Where every pound of your assignment rate goes, per year.
Full breakdown
Annual figures. This is an estimate — confirm with your umbrella before signing.

How this calculator works

When you work through an umbrella company on an inside-IR35 contract, the rate your agency pays — the assignment rate — is not your salary. The umbrella deducts its margin and all employment costs from that rate before your gross pay exists. This calculator solves for your real gross pay, then applies PAYE income tax, National Insurance, student loan and pension exactly as your payslip would.

The deduction waterfall

  • Umbrella margin — the company's fee, charged per week or month worked.
  • Employer's NI (15%) — payable on your earnings above the £5,000 secondary threshold, lawfully deducted from the assignment rate.
  • Apprenticeship Levy (0.5%) — passed on from the assignment rate.
  • Employer pension — if you're enrolled, the 3% employer contribution also comes from the rate.
  • What remains is your gross pay, taxed like any other employee.

Why your take-home is usually 60–65%

The gap between rate and reality is normal — it's the employment costs above plus your own tax and NI, not the umbrella overcharging. Differences between compliant umbrellas should come down to margin alone, which is exactly what the comparison tool isolates.

A note on accuracy & the new rules

From 6 April 2026, joint & several liability (JSL) makes agencies and end clients liable for unpaid PAYE in the umbrella supply chain. Only ever use an FCSA- or SafeRec-certified provider. Figures here are annualised estimates for guidance; your payslip is calculated per pay period and may differ slightly.

Reviewed against GOV.UK & gov.scot rates 2026/27 thresholds last verified June 2026 · This is information, not financial or tax advice.

2026/27 rates used

Employer costs
Employer NI rate
15%
Secondary threshold
£5,000
Apprenticeship Levy
0.5%
Income tax (rUK)
Personal allowance
£12,570
Basic 20% up to
£50,270
Higher 40% up to
£125,140
Additional
45%
Employee NI
Main rate (£12,570–£50,270)
8%
Above £50,270
2%
Student loans
Plan 1 / 2 / 4 / 5
9%
Postgraduate
6%
Other
Holiday pay
12.07%
NLW (21+)
£12.71