When you register with an umbrella company, you are entitled to holiday pay, but it is often an area that causes a lot of confusion. Continue reading as we explain how holiday pay works through an umbrella company, including how it is calculated and paid to umbrella company employees.
Umbrella Company Calculator has been built with one thing in mind – to provide contractors and freelancers in the UK with an accurate umbrella company take home pay illustration. A tremendous amount of time and effort has gone into this tool to ensure it’s as precise as possible. Keep reading, and we’ll explain more about Umbrella Company Calculator, including who built it, and which calculations produce the numbers you’ll see when you submit the form for yourself.
Umbrella companies process the payroll of their employees using PAYE – the government tax system. We’ve built our calculator using figures linked to PAYE, including the latest income tax rates and National Insurance figures. However, there is more to umbrella company calculations – as we’ll explain.
When a contractor requests an umbrella company calculation, there are a lot of pieces of information required. Assuming an umbrella company puts the correct information into their calculators – results should be accurate and trustworthy. However, we see time and time again that some umbrellas are manipulating the results of their calculations by putting misleading information into them to inflate a contractor’s take-home pay.
For example, some umbrella companies will use incorrect tax codes, and others won’t account for the worker taking time off throughout the year (such as annual leave). Therefore, we wanted to create a platform that presented contractors and freelancers with an accurate umbrella company calculation, and here’s how we’ve done it.
Our umbrella company calculator produces figures you can trust. Find out more about the complex calculations our developers have used here.