WORKER TYPE
Umbrella company payslip guide
Two layers of NI, an apprenticeship levy that is technically yours, and a margin. Umbrella payslips look complicated because they show employer-side costs the umbrella deducts from your assignment rate.
Educational estimates only. Not tax, legal, financial, payroll or employment advice. Verify with your employer's payroll team or HMRC.
Related
Common questions
Why does my umbrella deduct employer NI from me?
Strictly the employer NI is the umbrella's liability, not yours. But the assignment rate the agency pays the umbrella is set up to cover both employee and employer costs. So the umbrella deducts the employer NI (15 percent in 2026) from the assignment rate before calculating your gross pay. Some umbrellas show this as a separate line; others bury it in the margin.
What is the apprenticeship levy on my payslip?
A 0.5 percent levy on payrolls above 3 million GBP. Strictly the umbrella's liability. Like employer NI, it is deducted from the assignment rate before your gross pay is set. Your payslip should show it as a separate line under the deductions.
How much should the margin be?
Typical UK umbrella margins range from 15 to 35 GBP per week or 60 to 150 GBP per month. Higher margins should come with measurable extras (insurance, payroll error guarantees, rapid payments). If your margin is over 200 GBP per month with no clear value-add, shop around.
Is umbrella payment compliant with HMRC?
A genuine PAYE umbrella that processes Class 1 employee NI, employer NI and PAYE through HMRC RTI is fully compliant. Avoid any umbrella offering loan-style schemes, payments via dividends or offshore arrangements - HMRC has confirmed these are tax avoidance and they will be caught.
Check My Payslip
Free. Private. No signup.
Open the toolPayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, payroll, accounting, pension, benefits or employment advice. Always verify your payslip, tax code, deductions and take-home pay with your employer's payroll department, HMRC, your pension provider, a qualified accountant, tax adviser or another appropriately qualified professional.