Why is my umbrella company take-home pay illustration different to my net take-home pay?

There are plenty of reasons why your net take-home pay with an umbrella company may vary from the calculation you received before registering.

Firstly, a small number of unethical umbrella companies will inflate their take-home pay calculations to encourage contractors and freelancers to register with them rather than a competitor. In reality, every compliant umbrella in the UK that processes payroll will do so in the same way (PAYE – HMRC’s tax system), and the only factor between providers that’ll change the amount of pay you retain is the umbrella margin. Therefore, review any umbrella calculations you receive carefully and do not hesitate to query any amounts you’re unsure about.

Secondly, it’s important to understand that a take-home pay calculation is just an estimate of the deductions that will occur when paid by an umbrella. There are plenty of factors that can impact your net salary throughout the tax year that the umbrella cannot account for before you register, including tax code, amount of tax paid in the tax year, hours worked, expenses, pension contributions, and more.

Ethical umbrella companies will always do their best to provide accurate and transparent take-home pay calculations. However, do remember that the figures you’re presented before registering are not the exact figures you’ll see on your payslip when you’re paid for the first time.

Before choosing an umbrella company to join, we recommend considering the following accreditations/certifications:

The FCSA

The FCSA (Freelancer and Contractor Services Association) is the UK’s leading professional body committed to protecting contractors and freelancers by ensuring the supply chain is compliant. Umbrella companies that are dedicated to compliance can earn the prestigious FCSA accreditation by undergoing a series of assessments to ensure they adhere to the highest standards. Therefore, picking an FCSA umbrella company (like Churchill Knight Umbrella) is a great place to start your search.

SafeRec

SafeRec is revolutionising compliance in the contractor payroll sector. By choosing a SafeRec Certified Umbrella Company, you will have access to an AI-generated payslip audit every time you receive a payslip. This audit will provide feedback on all the deductions that have occurred, letting you know whether they’re accurate and ethical. Any potential malpractice will be flagged in the audit and shared with you and the supply chain. Churchill Knight Umbrella was one of the first SafeRec Certified Umbrella Companies and we’re delighted to pass on the many benefits to our employees.

Request a trustworthy take-home pay calculation today from Churchill Knight Umbrella

Churchill Knight Umbrella is an FCSA accredited and SafeRec Certified Umbrella Company. We have a fantastic reputation within the industry and exceptional online reviews. If you are looking for a new umbrella company, please complete the short form on this page, and we’ll get back to you shortly. Alternatively, you can request a free, accurate take-home pay calculation here or call our friendly team on 01707 871622.