Getting the most out of an umbrella company calculator

Whether you’re new to contracting or you’ve been doing it for donkey’s years, you’re probably keen to get an accurate indication of your take home pay before starting an assignment. And, as we’re dedicated to helping the UK’s temporary workforce understand all-things umbrella – we thought it’d be really useful to explain how to get the most out of an umbrella company calculation.

What is an umbrella company calculator?

We’ve noticed that ‘umbrella company calculator’ is a very frequent search on Google. Therefore, we wanted to write a short piece to explain what an umbrella company calculator is and what you should look out for when using one.

There isn’t a specific ‘umbrella company calculator’ that we would recommend as such. Instead, each umbrella company will be able to provide you with a tailored take home pay calculation based on your individual circumstances (rate of pay, hours you work in a week, tax code, pension/student loan situation, etc.).

Requesting an umbrella company calculation

If a particular umbrella company takes your fancy, we recommend you get in contact with them and ask for an accurate take home pay projection based on your circumstances. The umbrella should be able to provide you with an accurate indication of your pay retention (after tax). However, it’s worth noting that your actual take home pay may vary slightly due to a number of factors, including how much you’ve worked in the tax year, your tax code, etc.

An umbrella company calculator should take the following into consideration:

  • The hours you work per day, per week
  • Your rate of pay
  • Tax code
  • Whether or not you’re entitled to claim expenses
  • The umbrella’s margin
  • Your pension plans (e.g. will you be staying enrolled, or opting out of pension contributions)
  • Student loan (if applicable)
  • The abatement (which applies to workers earning over £100,000 per annum)

Transparent umbrella companies will provide you with a really accurate take home pay projection. However, some will fabricate the figures they show you to try and entice you to pick them over the competition. Don’t be fooled by umbrella companies trying to pull a fast one! Keep reading and we’ll explain hat you should be taking home through an umbrella company.

More information on the deductions you’ll see on your umbrella payslip can be found in our guest editorial – ‘Understanding Umbrella Company Deductions’, written by an FCSA accredited umbrella company.

What should you be taking home when working with an umbrella company?

Compliant umbrella companies operate PAYE. As a result, the only thing that varies between providers is the margin they deduct for their service. Let’s put this into a short scenario:

Sally approaches six umbrella companies, and they all have the same margin – £25 per week. Her daily rate is £250, she works 37.5 hours per week, and like most umbrella employees, she claims no expenses. Hypothetically, on her first pay day, all 6 umbrella companies will pay her exactly the same take home pay – to the penny. Forget what they said she’d retain having given her a take home pay calculation – they’ll process her pay in an identical way, and she’ll be paid the same.

The scenario above highlights how important it is that you’re given an accurate umbrella company calculation. It’s almost a certainty that one umbrella will offer you higher pay retention than the others. However, providing the margin is the same – you’re take home pay will be identical. Don’t let unethical and sneaky umbrellas try and trick you into using their service.

Have you seen our top 10 umbrella companies?

We have collated a list of top 10 umbrella companies and we think you’ll find it really useful. Not only does every company on the list provide an industry-leading service, they’re all accredited by the UK’s professional industry body – the FCSA. We recommend you take a look at them for yourself because there are some wonderful special offers available.

Get an umbrella company calculation now

If you’re looking for an umbrella company calculator, please visit our Get a Free Quote page. By completing a short form, we’ll send your details to a top 10 umbrella company. They’ll then get in contact with you shortly to discuss your circumstances and to provide you with a free and tailored take home pay retention. And, don’t worry – there is absolutely no obligation whatsoever to use their services!

Click here to see our top 10 umbrella companies!

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