Contractor Guides
How to read an umbrella payslip
From assignment rate to take-home pay, line by line, with a worked 2026/27 example.
An umbrella payslip has two halves. The top half turns your assignment income into gross taxable pay by taking out the costs of employing you. The bottom half turns gross pay into take-home pay by taking out your own tax and deductions.
A worked example
| 40 hours at £25 an hour, Umbrella Standard, 2026/27 | Per week |
|---|---|
| Assignment income | £1,000.00 |
| Kingsley Crest margin | −£20.00 |
| Employer National Insurance | −£115.30 |
| Gross taxable pay | £864.70 |
| Income Tax (1257L) | −£124.56 |
| Employee National Insurance | −£49.82 |
| Take-home pay | £690.32 |
Pension opted out, no student loan.
The top half: employment costs
- Assignment income is what your agency paid for your hours.
- The margin is the umbrella company's fee. A compliant payslip shows it.
- Employer National Insurance is 15% of pay above £96 a week in 2026/27. The umbrella company pays it as your employer, funded from the assignment income.
- Employer pension contributions appear here too if you are enrolled.
The bottom half: your deductions
- Income Tax depends on your tax code. 1257L is the standard code.
- Employee National Insurance is 8% between £242 and £967 a week, then 2%.
- Pension and student loan repayments if they apply to you.
Warning signs
- No margin or employer costs shown.
- Payments described as loans, advances or bonuses alongside your salary.
- Take-home pay that seems much higher than PAYE would allow.
Try your own figures in our umbrella calculator.
Need help with this? Our payroll and compliance team can talk it through with you. Talk to our team.
Last reviewed 9 October 2026. General information, not legal or tax advice.