What could my take home pay be as a contractor?

If you’re thinking about a career in contracting, you’ll probably want to know how much you could end up walking away with at the end of a busy day – and who can blame you?

There are many different options available to you, such as joining an agency’s Pay As You Earn (PAYE) scheme or operating as a sole trader. Each route has its own pros and cons, which you can find out more about here.

Another option is to join an umbrella company, such as Parasol. Not only do we sort out your Income Tax and National Insurance Contributions, saving you the hassle, but did you know that you could be financially better off as well?

Exactly how much better off you could be depends on a number of factors, including:

• Your assignment rate
• The duration and frequency of assignments
• The amount of business expenses you incur during your assignment

That last point is particularly important, as you wouldn’t be able to claim expenses if you were employed by your recruitment agency. What’s more, an umbrella company can tell you exactly what you can claim for, so you can maximise your income even further. Intrigued? Check out our expenses guide for more details.

But what exactly could your take home pay be if you joined Parasol? Never fear, as our handy calculator will help you find out how much you could earn, so you can decide the best option for you.

Further benefits to joining an umbrella company 

While the chance to earn more money is an obvious plus point to joining an umbrella company, it’s by no means the only one. For example, we’ll take care of all the admin associated with a contracting career – leaving you free to do what you do best.

We’ll also sort out your payments – so you don’t have to bother chasing clients. Simply upload your timesheets to our online portal and we’ll do the rest. We run several payrolls a day, so you won’t have to worry about being paid on time.

Finally, and perhaps most importantly to those nervous about leaving permanent employment, you’ll still receive all the rights and benefits you enjoyed as a “permie”. This includes holiday, sickness, maternity and paternity pay.