Umbrella Company Take Home Pay Calculator

One of the most important considerations for contractors is how much you can earn. Whilst contracting through a limited company may be the most tax efficient way of working, we understand that sometimes becoming an umbrella employee can be a better option for you and your unique circumstances.

Many new and short-term contractors look to umbrella companies as the best solution as they believe this best suits their needs. This is due to the fact that your umbrella company will manage your finances, including your tax and National Insurance contributions. As an umbrella employee, you do not need to worry about IR35, as you won’t be affected by the rules.

Calculate your take home pay as an umbrella employee

If you are considering working under a PAYE umbrella company, our sister company, Parasol can help. Parasol has a wealth of experience supporting contractors and can provide all of the help you need to get you started. 

You can calculate your take home pay as an umbrella employee by using Parasol’s online calculator

Is umbrella or limited best for me? 

Though both options offer you a route into the world of contracting, there is a considerable difference between contracting under an umbrella or through your own limited company. Ultimately, this decision comes down to personal preference and which route best suits your unique needs. 

There are arguments for and against each route. Although contractors generally earn less working through an umbrella, this is often balanced out by the convenience of having your umbrella company calculating managing your finances on your behalf. 

On the other hand, limited company directors can expect to take home a large majority of their wages and enjoy tax efficiencies. However, directors normally have to invest some time to manage tax returns and NIC. If you are also caught inside IR35, you may not be eligible for the same tax relief.

To work out your take home pay, you can consult our online contractor calculator

Support from SJD Accountancy

Whether you’re certain which route you want to take as a contractor or you still need some help to decide, the experts at SJD Accountancy are on hand to give you all the help and advice you need. Simply get in touch with us via phone 01442 275 789 or email newbusiness@sjdaccountancy.com