Key Information Document (KID) generator

An employment business must give each work-seeker a Key Information Document before obtaining their agreement to terms. It must be a separate document of no more than two sides of A4, titled "Key Information Document", and it must include a representative example of pay for a single pay period: gross pay, deductions required by law, any other deductions and fees, and the resulting net pay. This tool builds that example for a weekly pay period.

Direct PAYE deducts Income Tax at the 20% basic rate above the standard £12,570 personal allowance, employee National Insurance, and a 5% employee pension contribution on qualifying earnings between £120.00 and £967.00 a week, once pay is over £192.00 a week. Umbrella first takes the umbrella company's costs off the assignment rate: employer National Insurance (15% above the weekly secondary threshold), the apprenticeship levy (0.5%) and the umbrella's own fee. It then applies the same employee deductions to what is left. PSC shows the full rate paid gross to the worker's own company, with no deductions, because the company handles its own tax.

The illustration assumes a standard tax code, category A National Insurance and no student loan, and it only models the basic rate of Income Tax. It does not add holiday pay. Many umbrella companies also take employer pension contributions and holiday pay out of the assignment rate, and the apprenticeship levy only applies to umbrellas with a large enough pay bill, so a real umbrella payslip can differ from this example in either direction.

Worked example. A worker on £20.00/hr for 40 hours a week has £800.00 gross pay. Paid by the agency through PAYE, this tool estimates take-home pay of £609.71. If the same £800.00 is instead the assignment rate paid to an umbrella company with a £25.00 weekly fee, the umbrella's costs take £134.60, leaving worker gross pay of £665.40 and estimated take-home pay of £519.53. The two rates are not like for like: agencies usually offer a higher umbrella assignment rate than a PAYE pay rate because it has to cover the employer's costs, so compare the take-home figures on each KID rather than the headline rates.