Take-home this month (20 days)£5,728

Take-home per billed day£288.08

Take-home per year£66,834

Kept from assignment income57.6%

Take-home with holiday pay and pension

% of £116,000 assignment income a year

Item	Year	Month	Per billed day	% of rate
Take-home excluding holiday pay	£60,635	£5,052.94	£261.36	52.3%
Holiday pay after tax (£10,687 gross)	£6,199	£516.54	£26.72	5.3%
Take-home including holiday pay	£66,834	£5,569.48	£288.08	57.6%
Your pension contribution (salary sacrifice)	£2,202	£183.46	£9.49	1.9%
Employer pension contribution	£1,321	£110.07	£5.69	1.1%
Total value: take-home + holiday pay + pension	£70,356	£5,863.01	£303.26	60.7%
Tax, social security, employer costs and margin	£45,644	£3,803.65	£196.74	39.3%

Holiday pay is already part of take-home: it is shown separately so you can see its value after tax. Pension counts your own and the employer's contributions, which belong to you but are not paid out until retirement.

Allowances, expenses and tax regimes

Paid through payroll within each legal limit. Items marked "Tax and social security free" are paid out of the rate before employer costs, so they also save employer contributions. "Income-tax free" items still carry social security. Gains are per year at your current rate.

	Allowance or expense	Treatment	Amount	Per year	Take-home gain
	Homeworking allowance (£6 a week) Only when the contract requires you to work from home (ITEPA s316A). Travel and subsistence are not allowed for umbrella workers under supervision, direction or control.	Tax and social security free	£1.20/day · days / month	£278	+£139

Items in use0of 1 for this country

Paid tax-free per year£0no tax or social security

Income-tax-free per year£0social security still due

Extra take-home from these items£0per year vs none

Monthly payroll

Payslip and monthly reconciliation use: 20 days worked

Monthly payslip	Days worked (20)	Average (21.66 days)	Difference
Days paid	20	21.66	-1.66
Assignment income	£10,000.00	£10,830.00	-£830.00
Admin charge (before tax)	-£100.00	-£108.30	£8.30
Total employer costs	-£1,345.14	-£1,455.41	£110.27
Gross pay paid	£8,554.86	£9,266.29	-£711.43
of which holiday pay paid now	£921.36	£997.98	-£76.62
Employee pension	-£183.46	-£183.46	£0.00
Income tax	-£2,308.84	-£2,735.70	£426.86
Employee NI	-£334.98	-£349.21	£14.23
Take-home pay	£5,727.58	£5,997.92	-£270.34

Holiday pay paid this month£5,727.58take-home this month

Holiday pay held back£5,200.80take-home this month

Extra take-home by paying now£526.78holiday pay £921.36 gross

Held in holiday fund£1,064.17incl. employer costs

PAYE is worked out for the month with 1/12 of the personal allowance, tax bands and NI thresholds (1257L). A cumulative tax code evens out over- or under-paid tax across the tax year.

Day rate reconciliation

Every pound of the rate, in the order payroll takes it, until nothing is left.

Item	Goes to	Amount	Balance left
Day rate		£500.00	£500.00
Admin charge, taken before tax
Umbrella margin	umbrella	−£5.00	£495.00
Employer costs, funded from your rate
Employer NI (15% above £5,000)	HMRC	−£59.50	£435.50
Apprenticeship Levy (0.5%)	HMRC	−£2.09	£433.41
Employer pension contribution	your pension	−£5.69	£427.72
Total employer costs		−£67.28	£427.72
Your deductions from gross pay
Pension by salary sacrifice	your pension	−£9.49	£418.23
Income tax	HMRC	−£113.12	£305.11
Employee NI (8% / 2%)	HMRC	−£17.03	£288.08
Total employee deductions		−£139.64	£288.08
Paid to you
Take-home pay	your bank	−£288.08	£0.00
Balance remaining		£0.00	✓ Fully reconciled

You (take-home)£288.0857.6% of rate

Your pension£15.183.0% of rate

HMRC£191.7438.3% of rate

Umbrella margin£5.001.0% of rate

Where the rate goes

Share of £116,000 assignment income

Take-home 57.6%Pension (yours) 3.0%Taxes 22.6%Employee NI / social security 3.4%Employer costs 12.3%Admin / company costs 1.0%

Payslip breakdown

Week = year ÷ 52 · billed day = year ÷ 232

Item	Year	Month	Week	Billed day
Assignment income	£116,000	£9,666.67	£2,230.77	£500.00
Less admin charge (before tax)	-£1,160	-£96.67	-£22.31	-£5.00
Employment cost available	£114,840	£9,570.00	£2,208.46	£495.00
Employer costs (funded from the rate)
Employer NI (15% above £5,000)	-£13,804	-£1,150.35	-£265.47	-£59.50
Apprenticeship Levy (0.5%)	-£485	-£40.43	-£9.33	-£2.09
Employer pension contribution	-£1,321	-£110.07	-£25.40	-£5.69
Total employer costs	-£15,610	-£1,300.86	-£300.20	-£67.29
Gross pay made up of
Basic pay	£88,543	£7,378.55	£1,702.74	£381.65
Holiday pay (12.07%, rolled up)	£10,687	£890.59	£205.52	£46.07
Gross pay (incl. holiday pay)	£99,230	£8,269.14	£1,908.26	£427.71
Employee deductions
Pension by salary sacrifice	-£2,202	-£183.46	-£42.34	-£9.49
Income tax	-£26,243	-£2,186.94	-£504.68	-£113.12
Employee NI (8% / 2%)	-£3,951	-£329.26	-£75.98	-£17.03
Total employee deductions	-£32,396	-£2,699.66	-£623.00	-£139.64
Take-home pay	£66,834	£5,569.48	£1,285.26	£288.08
Total going into your pension	£3,522	£293.53	£67.74	£15.18

Sample payslip

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Enter the company name and employee name to create the payslip.

Company details

Company name (required) Registered address Company number Employer PAYE reference Logo (PNG or JPG, optional)

Employee and pay period

Employee name (required) Employee number NI number Pay date Pay frequency

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PAYSLIPMonth 7 · tax year 2026/27
Pay date 30 October 2026

EmployeeEnter employee name

Employee no.–

NI number–

FrequencyMonthly

Payments

Basic pay	£7,633.50
Holiday pay (12.07%, rolled up)	£921.36
Total gross pay	£8,554.86

Deductions

Pension by salary sacrifice	£183.46
Income tax	£2,308.84
Employee NI (8% / 2%)	£334.98
Total deductions	£2,827.28

Net pay£5,727.58

Assignment funds

Assignment income received	£10,000.00
Less admin charge (margin)	-£100.00
Less employer NI (15% above £5,000)	-£1,193.21
Less apprenticeship Levy (0.5%)	-£41.86
Less employer pension contribution	-£110.07
Gross pay available	£8,554.86

Employer costs

Employer NI (15% above £5,000)	£1,193.21
Apprenticeship Levy (0.5%)	£41.86
Employer pension contribution	£110.07
Total employer costs	£1,345.14

Information

Days paid this period	20 × £500.00
Tax code	1257L
NI category	A
Household	single, no children
Holiday entitlement	28 days (5.6 weeks)
Holiday pay included this period	£921.36
Total into pension this period	£293.53

Generated from illustrative calculations; confirm against payroll records.

Holiday pay

5.6 weeks · 28 days

Statutory holiday pay

12.07% of hours worked for 46.4 working weeks. Included in your gross pay.

£10,687 a year · £46.07 per billed day

Rolled up into every payslip

Allowed for irregular-hours and part-year workers for leave years from April 2024. Holiday pay must appear as a separate line on each payslip.

28 days off pays £10,687 gross

Effect on take-home

Holiday pay is taxed the same as basic pay. Accrual or roll-up changes the timing of cash, not the annual total.

Ways to raise take-home

Compliant options only

Tax-free allowance

Homeworking allowance (£6 a week)

Only when the contract requires you to work from home (ITEPA s316A). Travel and subsistence are not allowed for umbrella workers under supervision, direction or control.

+£139 a year

Marginal take-home

Of each extra £100 billed, this is what reaches you after all deductions at your current level.

£50.22 kept

Keep income in the basic-rate band

Sacrificing £46,758 brings adjusted net income to the £50,270 higher-rate threshold. Each £1 sacrificed costs you about 58p (40% tax and 2% NI saved).

£46,758 into pension for £23,480 less take-home

Pension efficiency

Raising your contribution by 1 percentage point.

£440 into pension costs £221 take-home (50p per £1)

Only if outside IR35

Limited company route

If the client's Status Determination Statement says outside IR35, working through your own company pays salary and dividends at the optimum split.

+£1,001 a year

Admin charge sensitivity

The margin comes out before tax, so each pound of margin costs less than a pound of take-home.

A 20% lower charge adds £117 a year

Compliance

Avoid schemes promising 80%+ retention

Loans, "bonuses" paid outside PAYE and expenses claims through umbrellas are disguised remuneration. Since 6 April 2026 agencies and clients are jointly and severally liable for an umbrella's unpaid PAYE, and workers face the tax bills.

IR35 route comparison

Same rate, days and costs

Limited company uses the best director salary (£12,570) with remaining profit paid as dividends after corporation tax of £20,591. Umbrella includes statutory holiday pay and employment rights; Ltd and deemed routes do not.
Route	Status	Take-home / year	Per month	Pension	Kept
Umbrella PAYE	Inside or outside	£66,834	£5,569	£3,522	57.6%
Own Ltd, deemed employment Best inside IR35	Inside IR35	£67,809	£5,651	£0	58.5%
Own Ltd, salary + dividends Highest	Outside IR35 only	£67,835	£5,653	£9,280	58.5%

Outside IR35 is only available when the client's Status Determination Statement (or your own assessment for small clients) says the role is outside. An umbrella always runs PAYE, so its result is the same whatever the IR35 status.

Pension method comparison

Same contribution percentages

Method	Take-home	Into pension	Higher-rate relief to reclaim	Total value
Salary sacrifice Best Current	£66,834	£3,522	–	£70,356
Net pay arrangement	£66,618	£3,522	–	£70,141
Relief at source	£66,178	£3,522	£440	£70,141

Country comparison

Same rate and admin charge, converted at approximate FX · local default pensions · default region per country · UK as umbrella

Country	Gross salary	Take-home / month	Take-home / month (€)	Kept
Bulgaria	€127,205	€9,278	€9,278	83.5%
Malta	€128,794	€7,525	€7,525	67.7%
Switzerland · Zurich	CHF 110,080	CHF 6,973	€7,498	67.5%
Cyprus	€119,167	€6,941	€6,941	62.5%
Hungary	HUF 45,557,522	HUF 2,524,646	€6,473	58.3%
United Kingdom · England	£99,230	£5,569	€6,402	57.6%
Denmark · Average municipality	DKK 972,720	DKK 47,600	€6,381	57.4%
Estonia	€98,655	€6,336	€6,336	57.0%
Romania	RON 655,804	RON 31,970	€6,293	56.6%
Lithuania	€129,704	€6,266	€6,266	56.4%
Latvia	€107,160	€6,107	€6,107	55.0%
Finland · Average municipality	€110,000	€6,046	€6,046	54.4%
Spain · Madrid	€112,320	€6,022	€6,022	54.2%
Czechia	CZK 2,420,089	CZK 146,629	€6,009	54.1%
Luxembourg	€116,300	€6,001	€6,001	54.0%
Ireland	€116,969	€5,959	€5,959	53.6%
Netherlands	€116,912	€5,828	€5,828	52.5%
Croatia · Zagreb	€113,305	€5,759	€5,759	51.8%
Poland	PLN 487,182	PLN 23,630	€5,560	50.0%
Austria	€104,032	€5,445	€5,445	49.0%
Sweden · Average municipality	SEK 1,099,833	SEK 58,901	€5,379	48.4%
Germany · North Rhine-Westphalia	€112,099	€5,371	€5,371	48.3%
Slovakia	€96,916	€5,311	€5,311	47.8%
Greece	€108,899	€5,229	€5,229	47.1%
Slovenia	€112,724	€5,015	€5,015	45.1%
Portugal · Mainland	€106,667	€4,961	€4,961	44.6%
France · Mainland France	€91,034	€4,836	€4,836	43.5%
Italy · Average region	€96,414	€4,608	€4,608	41.5%
Belgium · Average municipality	€103,937	€4,575	€4,575	41.2%

Country notes and rates used

Income tax 2026/27: personal allowance £12,570, tapered by £1 for every £2 of adjusted net income above £100,000. England, Wales and NI: 20% to £50,270, 40% to £125,140, 45% above. Scotland: 19/20/21/42/45/48% (higher rate from £43,663). Wales uses the same rates as England (Welsh rates held at 10p per band), and Northern Ireland uses UK rates.

National Insurance: employee 8% from £12,570 to £50,270 and 2% above; employer 15% above £5,000. Employment Allowance is not available to umbrella companies or single-director companies.

Umbrella method: assignment income less the admin charge is the employment cost pot. Employer NI, Apprenticeship Levy and employer pension come out of the pot, and the remainder is gross pay including 12.07% holiday pay. Since 2016 travel and subsistence for umbrella workers under supervision, direction or control are not tax-free.

IR35: medium and large clients issue a Status Determination Statement. Inside IR35 via your own company, the fee-payer deducts employer NI, levy, tax and NI from a deemed payment. Outside IR35: corporation tax 19% to £50,000 rising to 25% at £250,000; dividend allowance £500; dividend rates 10.75% / 35.75% / 39.35% from April 2026.

Student loans 2026/27: Plan 1 £26,900, Plan 2 £29,385, Plan 4 £33,795, Plan 5 £25,000 at 9%; postgraduate £21,000 at 6%.

Salary sacrifice: NI relief is fully available in 2026/27. The Budget 2025 cap limiting NI-free salary sacrifice to £2,000 a year takes effect from April 2029.

Household (single, no children): The UK taxes individuals, so marital status and children do not change PAYE. Household rules use 2026 figures where published; children are assumed to be under 18 and living with you, and dependent parents to live in your household.

Allowances and regimes: limits are 2026 where confirmed; items marked "check" in their conditions should be confirmed before use. Tax-free allowances must be paid within each legal limit and condition, usually on top of agreed pay rather than by converting salary (Germany and Austria in particular). Expat regimes need an approved application.

UK figures use HMRC 2026/27 rates and thresholds (tax code 1257L, category A NI, cumulative annual basis). Swiss figures use 2026 AHV/ALV/BVG rates and ESTV 2026 tax burden for each cantonal capital. EU figures model each country's main income tax, employee and employer social contributions for a single resident with no dependants, using 2025–26 parameters; regional and municipal rates, household circumstances (marital status, children, dependent parents), tax-free allowances and special regimes are modelled from 2026 rules where published, with some simplification. Use the results for quoting and illustration, and confirm with in-country payroll before contracting.

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