Calculate Your Take-Home Pay Now.
Find Out Your Take-Home Pay with Our FREE Umbrella Company Calculator.
Please Note: This is an estimate for illustration purposes only.
The Gold Standard for Contractors
Select our standard plan or upgrade to our premium solution: Trafalgar Gold. Gold gives you everything you’d expect from Trafalgar, plus exclusive benefits including: private pension contributions, private medical care; and discounts at hundreds of top brands.
Making Contracting Easy for 25 Years.
- Trafalgar Group SIPP
- Superfast, SalaryNow Payment Option*
- Same Day Payments as Standard
- Access to Dedicated, User-Friendly OnePortal
- £5,000,000 Public Liability Insurance*
- £5,000,000 Professional Indemnity Insurance*
- £10,000,000 Employers’ Liability Insurance*
- Statutory Sick Pay + Holiday, Maternity & Paternity Pay
- Referral Rewards
*Terms, Conditions & Exclusions Apply
Get even more... Go for Gold!
The Gold Standard for Contractors.
ALL the features included in our standard plan, PLUS:
- Medical & Dental Cash Plan
- Private Pension Contributions to Your Chosen Provider
- Salary Sacrifice Pension Contributions
- Up to 15% OFF Specialist IFA Services
- Up to 15% OFF Mortgage Brokerage & Protection Advice
- Trafalgar GoldStars Rewards incl. Discounts at 120+ Top Brands
- £50,000 Death in Service
- 12 Months FREE Total Motor Assist
- 40% OFF RAC Breakdown Cover
- Discounted Gym Memberships
- NEW Priority WhatsApp Support - Max. 1 HOUR Response Time
- Dedicated 121 Point of Contact
- Bi-Annual Contractor Review with Your Account Manager
- 20% OFF Self-Assessment Tax Return
Understanding Your Take-Home Pay Calculation
Umbrella Company Holiday Pay
Holiday pay is calculated as 12.07% of your gross taxable pay, reflecting the statutory entitlement of 5.6 weeks of leave per year. With Trafalgar Umbrella, your holiday pay is calculated within each payment and can either be advanced to you every time you get paid, or saved / accrued for you to take out at a later date. The exact amount will always be clearly displayed on your weekly/monthly payslip. Holiday pay is subject to Income Tax and National Insurance contributions.
Contracted Rate vs Umbrella Company Take-Home Pay
If you’re new to contracting, you may wonder what the difference is between umbrella company take-home pay and the contracted rate.
The ‘Contracted Rate‘ is the funds paid by your end client or agency to us, the Umbrella Company. This rate is typically uplifted in comparison to an equivalent employee, to account for necessary deductions. When we receive your contracted rate, we forward statutory deductions (Employer’s NI & Apprenticeship Levy) to HMRC, and retain our admin margin, which leaves your gross pay.
From this, Employee’s NI and Income Tax are deducted, as is standard for PAYE. The figure that is left is your take-home pay.
Be wary of Umbrella Companies offering an unusually high take-home pay – if it seems too good to be true, it probably is. These less scrupulous providers could be using some ‘creative’ accountancy techniques, such as not paying the correct amount of tax to HMRC. This is tax evasion, and it could land you, the contractor, in hot water with the taxman. So, don’t take the risk – stick to compliant and accredited Umbrella Companies like Trafalgar Umbrella.
Expenses through an Umbrella Company
Whether you’re working through an umbrella company or as an agency PAYE employee, your wages will be paid through the PAYE system. However, if you’re employed by an umbrella company, you may be eligible to claim certain work-related expenses.
As a contractor, you might incur costs that your agency has agreed to reimburse—these are typically known as billable or chargeable expenses. If your agency is reimbursing you, you can claim these expenses through us. As long as we have confirmation from your agency and a valid online claim with VAT receipts submitted via our portal, these expenses can be offset against tax and National Insurance.
For expenses that are not reimbursed by your agency, you may still be able to claim tax relief. This can be done directly through HMRC using a P87 form or by including them in your self-assessment tax return. In all cases, it’s important to keep your receipts as proof of the expenses claimed.
Lets Talk
Got a question? Interested in joining Trafalgar Umbrella as a contractor or agency partner? Head to our get in touch page now and connect with one of our specialist advisors.
