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Umbrella pay, explained without the jargon.

If you're new to contracting, "umbrella" gets thrown around like everyone already knows what it means. Here's what it actually is, how you get paid, and what comes out of your money before it lands.

SafePAYE accredited Fully HMRC compliant A real person to ask
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What an umbrella company actually is.

When you contract through an agency, someone has to employ you and pay you properly. That's the umbrella company. You become their employee. They invoice the agency, receive the money for your work, run it through PAYE, and pay you a proper payslip with tax and National Insurance already sorted.

You get the flexibility of contracting with the paperwork of employment handled for you. No limited company to run. No accountant to chase. No tax returns to panic about in January.

You
Do the work,
submit timesheet
Umbrella
Employs you,
runs PAYE
Agency
Pays the
invoice
HMRC
RTI filed
every pay run
The process

From timesheet to
your bank account.

£
01

You do the work

You complete your assignment and submit your timesheet for the hours or days you've worked.

02

The umbrella invoices the agency

We invoice your agency or end client for the value of your timesheet. You never touch this part.

03

The money comes in, PAYE runs

We receive the funds, deduct tax, National Insurance and our margin, and submit RTI to HMRC in real time.

04

You get paid

A clear payslip and money in your account, same day on our standard pay runs. Every deduction shown and explained.

Straight talk

The deductions,
explained honestly.

This is the part most umbrellas skate over. We won't. Here's exactly what comes out before you're paid, and why.

Anyone promising you 85% or 90% take-home is not running a legitimate umbrella. Compliant umbrellas all land in the same range, because they all follow the same tax rules.

What comes out

On £4,820 gross
Income taxThe same PAYE tax any employee pays. Nothing unusual.
−£723.00
Employee National InsuranceStandard, same as any job.
−£289.62
Employer costsEmployer NI & the Apprenticeship Levy — from the assignment rate, not thin air.
−£498.00
Pension (if enrolled)Auto-enrolment applies, same as employment. You can opt out.
−£196.00
Our marginA fixed, transparent fee. Twenty pounds per payslip. That's it.
−£20.00
Your take-home £3,093.38
Is it right for you

Umbrella, limited company,
or agency PAYE.

What matters
Umbrella
Limited Co
Agency PAYE
Admin on your side
Almost none
A lot
None
Run your own accounts
No
Yes
No
Best for short contracts
Yes
No
Yes
Best for high day rates
Sometimes
Often
No
Handles IR35 for you
Yes
You manage it
Yes
Flexibility to switch roles
High
Medium
Low

Umbrella suits most contractors on assignments inside IR35, or anyone who wants the freedom of contracting without running a company. If you're not sure which fits you, ask us. We'll tell you straight, even if the answer isn't umbrella.

Quick answers

The things people ask us first.

No. You pay the same PAYE tax you'd pay as an employee. What you see is the true, honest figure with nothing hidden.

Employer National Insurance and the Apprenticeship Levy are legally the employer's cost, funded from your assignment rate. Honest umbrellas show them on your payslip. Ones that hide them aren't doing you a favour.

Yes. We migrate contractors quickly and handle the changeover, so there's no gap in your pay.

Same day on our standard pay runs, with the maths already checked before the money moves.

The real number

Want to see your real take-home?
We'll show you.

Tell us your assignment rate and we'll give you a clear, honest breakdown of exactly what you'd take home. No inflated promises. Just the real number.

Your day rate
£ / day
Est. monthly take-home~21 days · illustrative
£6,180

A rough guide only — your real figure depends on tax code, pension and assignment terms. Send us your rate for an exact, honest breakdown.