# NHS Bank vs. Agency vs. Substantive Pay Calculator 2026/27 — Inside IR35 Umbrella vs. +12.07% WTR Holiday Pay

> Compare exact net take-home pay and hidden costs between Permanent NHS Substantive contracts, Trust Staff Bank (+12.07% WTR holiday pay uplift), and Agency Nursing Inside IR35 (after 13.8% Employer NI, 0.5% Apprenticeship Levy, and umbrella fees).

Canonical: https://netpayscale.uk/agency-vs-bank-calculator/
Last updated: 2026-10-26

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## Quick Answer (NHS Bank vs. Agency Nursing)
Under UK Agenda for Change rules, an **NHS Staff Bank** shift includes a statutory **+12.07% Working Time Regulations (WTR) holiday pay uplift** with zero middleman deductions and access to the 2015 CARE pension (+23.78% employer deposit). Conversely, **Agency nursing inside IR35** requires the worker to pay **Employer NI (13.8%)**, **Apprenticeship Levy (0.5%)**, and weekly umbrella fees (£20–£30/wk) from their headline rate, eroding **35% to 45%** of the advertised pay.

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## Contractual Deductions & Rights Comparison

| Feature / Employment Right | Permanent Substantive AfC | NHS Staff Bank | Agency (Inside IR35 Umbrella) |
| :--- | :--- | :--- | :--- |
| **Contractual Security** | Guaranteed permanent contracted hours | Zero-hours flexibility | Zero-hours (vulnerable to shift cancellations) |
| **Holiday Pay Accrual** | 27–33 days + 8 Bank Holidays paid | **+12.07% WTR uplift** paid on every hour | Rolled-up from headline rate (no extra funding) |
| **Employer NI (13.8%)** | Paid by NHS Trust (zero worker deduction) | Paid by NHS Trust (zero worker deduction) | **Deducted from worker assignment rate** |
| **Apprenticeship Levy (0.5%)** | Paid by NHS Trust | Paid by NHS Trust | **Deducted from worker assignment rate** |
| **Umbrella Margin** | £0 / None | £0 / None | **−£20 to −£30 per week (−£100/mo)** |
| **NHS 2015 CARE Pension** | Automatic (1/54th pot + 23.78% employer) | Opt-in available (Trust contributes) | Zero NHS pension (usually basic 3% NEST) |
| **Occupational Sick Pay** | Up to 6 months full + 6 months half pay | Statutory Sick Pay only | Statutory Sick Pay only (£118.75/wk) |
| **Death in Service Benefit** | 2x annual salary tax-free lump sum | Eligible if contributing to NHS pension | Zero life assurance coverage |

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## Why Agency Headline Rates Deceive (The Inside IR35 Umbrella Trap)

When an agency quotes an assignment rate of **£36.00/hour** for 37.5 hours/week (£1,350/wk gross):
1. **Umbrella Margin:** −£25.00/wk
2. **Apprenticeship Levy (0.5%):** −£6.75/wk
3. **Employer Class 1 NI (13.8% on earnings >£175/wk):** −£162.15/wk
4. **Worker Gross Taxable Pay:** £1,156.10/wk (£30.83/hr effective gross, losing −£5.17/hr before employee tax!)
5. **Employee PAYE Tax (20%) + Employee NI (8%):** −£255.45/wk
6. **Net Take-Home Cash in Bank:** **£900.65/wk** (£24.02/hr true net).

Over **33% to 45%** of headline agency pay vanishes to employment taxes and umbrella fees.

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## How the 12.07% NHS Staff Bank Holiday Pay Works
Under the UK Working Time Regulations:
$$\text{Statutory Holiday Entitlement} = 5.6 \text{ weeks}$$
$$\text{Working Weeks per Year} = 52 - 5.6 = 46.4 \text{ weeks}$$
$$\text{Accrual Rate} = \frac{5.6}{46.4} = 12.0689\% \approx 12.07\%$$

* **Band 5 Nurse (Step 0):** £16.40/hr base + £1.98/hr holiday pay = **£18.38/hr gross bank rate**.
* **Band 6 Nurse (Step 0):** £20.44/hr base + £2.47/hr holiday pay = **£22.91/hr gross bank rate**.

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