Calculate Your Take Home Pay
I earn (£)
and get paid
my tax code is
and I would like to
Exclude Pensions Deductions
Include Pensions Deductions
Your likely to take home***
Let us email you the detailed breakdown
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*Assumptions have been made to this stage.
1. Weekly is based on 5 days, or 37.5 Hours 2. Monthly is based on 21.6 Days ((5*52)/12) or 162.5 Hours ((37.5*52)/12) 3. Tax code is default 1250L and calculation made on a Week1/Month1 basis (not cumulative).
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How we work out your take home pay?
Pre-Gross for Tax Deductions
When working through an Umbrella Company, it is standard practice that you (the contractor) absorb the cost of the Employers NI and Pension. In order to mitigate this cost you are required to negotiate your standard PAYE rate up. Working in this way provides you with the benefit of working in a temporary capacity, but with all the benefits of an employed individual.
This field stipulates Primary Threshold (PT) for frequency of pay.
All umbrella companies deduct a weekly or monthly margin for the purposes of processing your agency pay.
Hidden - Gross for Tax
Employers National Insurance
This calculation is based on Gross Pay, less the Employers PT, Less Employers Pension, Less Margin /113.8 *13.8%
Currently, Simplify will cover this charge for you and is therefore not used in determining the true gross.
Which works out at a true work rate of
True Gross For Tax
This is important as if you are new to umbrella, or moving from standard PAYE, this value should represent your expected earnings rate (if it doesn't, then you are likely to receive a lower than expected net take-home pay)
Once the above amounts have been deducted from the gross pay, the umbrella company can then calculate the employee tax, NI and Pension liabilities.
Gross for Individual Tax, NI and Pension
Depending upon your tax code (set by HMRC) most individuals will be permitted a personal allowance. This personal allowance is defined by your tax code, for example tax code 1250L will permit an individual to earn £12,500 per year free of tax. Once your earning exceed your personal allowance, there are three bands of income tax. Based on your rate of pay defined above, the tax exemption and tax liabilities are shown below.
Amount to tax
Which band to use?
Income Tax at 20%
Income Tax at 40%
Income Tax at 45%
Total Income Tax Due
Note. This is illustration only. Other factors will be taken into consideration such as your earnings to date. The above is based on a week1/month1 scenario - which in effect means that we treating this scenario as if it was the first week or month in the tax year, with no earnings recevied to date.
Employees National Insurance
NI applicable at bands
Employees National Insurance
Which to use?
Assumptions to determine Gross Pay. Weekly earnings based on days=5 days per week, hours = 37.5 hours per week. Paid weekly is a multiplier of 5 days, whereas paid monthly is 5 multiplied by 52 divided by 12 (so 21.7 days per month).
Code to work out the multiplier
**Gross Pay = Your pay before any tax, national insurance or pension deductions.