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

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SJD Accountancy

SJD Accountancy are the UK's largest specialist provider of fixed fee, Limited company accountancy services to contractors; we've been acting for contractors across the UK since 1992 and have more than 15,000 clients.

We are the only national specialist firm of contractor accountants with offices nationwide. SJD Accountancy has more qualified staff than any other firm in our market with qualifications from the following major tax and accountancy bodies - ATT, AAT, CTA, ACCA, CA, ACA and FCCA.

  • Unlimited face to face meetings. This is a unique service only SJD Accountancy offers - unlimited face to face meetings across the UK - tax is complicated and sometimes only a meeting will do.
  • UK's largest contractor accountants with more qualified staff. No call centres, no outsourcing, no automated call handling. Simply telephone, email or meet your own dedicated accountant face to face.
  • Our Customer Promise. Respond to any question sent to your accountant or any dedicated department within 24 hours.  If we need more time, we will update you as soon as we can and we promise to keep you informed of the progress we are making in answering your question.
  • Outstanding reputation. We have won more awards for customer service and accountancy excellence than any other firm in our market, including: Best Accountant for Contractors, Accountant of the Year and Best Professional Service Team to name just a few.
  • All inclusive low cost fixed fee accountancy package which includes completion of accounts*, payroll bureau, dividends and corporation tax computations, personal taxation, free bookkeeping software, your own dedicated accountant* and all company returns for a fixed fee starting from £120 plus VAT per month. Check our packages for more detail.

If you have any questions about contracting or would like any further advice please call our new business team on 01442 275789 or email: Our new business team is open Monday to Thursday (8am to 8pm), Friday (8am to 7pm) and Saturday (10am to 4pm)

Appoint SJD Accountancy and never worry about your tax or accountancy affairs again.

Form your own limited company with SJD - our same day online company formation service includes company bank account set up, VAT/PAYE registration and advice on optimum share structure. 

You may also find the following pages, guides and case studies useful:

*If you would like us to complete your company year end accounts we simply ask that you have been a client of SJD for one year or have made 12 monthly payments. All accountants are part or fully qualified.