Limited Company versus Umbrella Calculator

Limited Company versus Umbrella Calculator

This calculator compares your pay through a contractor Limited Company to that through an Umbrella Payroll Company.  This calculator allows you to work out what your take home pay is using both options.

FD Capital Recruitment has opportunities that are suitable for Limited Company (Outside of IR35) and ones that only work via Umbrella companies (Inside IR35) based on a status determination undertaken in line with the IR35 regulations either by the client directly or by our team if the client is a small company based on the legislation

When exploring opportunities with us, we ask that you quote us a rate both inside and outside or IR35 so we can understand what your earning expectations are and therefore be able to match you to a role, this calculator is therefore a guide to help you decide what rate you wish to offer.


Your Take Home Pay Calculation

Based on £500.00 per day over 3 days a week before pension:

Weekly Income: £1,500.00

Employers NI: £157.46
Employment Tax: £6.55
Margin: £25.00
Pension: £0.00

Taxable Salary: £1,310.99 (£436.99 per day)

Employees NI: £100.84
PAYE: £282.60

Total Net Income: £927.55

* Please note if your assignment is likely to take you over 12 months full time, then your annualised salary for 12 months is £105k, as such between £100k and £125k your tax free allowance will reduce, and over £125k it will be removed in it’s entirety. If HMRC were to do this at the start of the assignment rather than clawing the tax back at the end of the year, your weekly take home would be more like £1,429.40 per week as opposed to £1,434.99.

If you want to consider making pension contributions to a scheme, then these are done via salary sacrifice. To give you an idea of the difference on your take home; if you were to pay £1,000 into the pension each month, made up of £500 employer and £500 employee, then your take home will drop by £500, if you were to pay £500 then, your take home will drop by around £250 giving you around 50% tax and National Insurance relief on any pension contribution you make. This is just a rough guide and assumes a standard tax code, so if you do wish for us to provide another calculation including pension, then please do let me know what amount you would like to contribute.

Pension contributions are subject to the auto enrolment minimums of 5% employee and 3% employers.