How Umbrella Pay Works

Complete guides covering every aspect of umbrella company pay — from first principles to advanced deduction breakdowns.

What is an Umbrella Company?

A complete beginner's guide to how umbrella employment works, who uses it, and the pros and cons.

Step-by-step: every deduction from assignment rate to net take-home, with worked examples.

Every line on your umbrella payslip explained — employer NI, levy, margin, income tax, employee NI.

The crucial distinction between your day rate and the assignment rate — and why it matters for your calculations.

What the umbrella margin is, typical costs, and how to compare umbrella companies on margin.

How employer National Insurance is calculated and why it comes from your assignment rate.

What the apprenticeship levy is and how it affects umbrella workers' take-home pay.

How umbrella companies handle statutory holiday pay — rolled-up vs accrued holiday explained.

Auto-enrolment, employer contributions, and how to optimise your pension through an umbrella company.