Umbrella costs deducted from your assignment rate:
- Employer's NI: 13.8% on earnings above £175/week (£9,100/year)
- Apprenticeship Levy: 0.5% of total payroll (applies to umbrella companies with £3m+ payroll)
- Admin/Margin Fee: Adjustable £15-35/week (use slider above to match your payslip)
How it works: Your client pays an assignment rate (e.g., £20/hour). The umbrella company deducts employer's NI, apprenticeship levy, and their admin fee from this rate before calculating your gross pay. Then income tax and employee NI are deducted from your gross pay.
PAYE difference: With PAYE employment, the employer pays these costs separately - they don't come out of your pay rate. This is why umbrella take-home is significantly lower.