The only income that compliant umbrella companies retain for themselves is the margin they deduct. The margin is the umbrella's source of profit, but it also covers all the associated business costs, including software, rent, salaries, etc. Umbrella company margins vary. Most commonly, you will see weekly margins between £15 and £30 and monthly margins between £60 and £120. Umbrella margins are deducted from your gross pay, meaning you save on tax. However, be warned – some umbrella companies will quote you their net margin – which will be lower. They do this to trick you, so be prepared! The umbrella company margin is the only factor that should alter your take-home pay between providers. Let's look at a quick example. There are two umbrella companies you're interested in using, and they both have a £20 per week margin. In this scenario, you should retain exactly the same amount of your take-home pay with each - to the penny, because the only thing that should impact your pay retention is the umbrella company margin, and in this scenario - it's the same.

My Digital is a leading provider of umbrella company software. They provide software for umbrella companies to use in their back end – to aid administration and streamline payroll processes. However, they also create front-end cloud software (portal and app) designed especially for contractors, and this will give them access to payslips, a tool to upload timesheets, etc. My Digital are leaders in secure software solutions and have excellent levels of protection to help umbrellas and contractors stay safe online against cyber threats.