Parasol Payslip question

[biton]

Hello all,

First post so excuse me for being a newbie

I just started my first contract and currently working with Parasol.
I got my first payslip today and noticed something I don't understand that have a direct effect on my take-home sum.

The taxable pay part was 12% lower than what was received from the client (Excluding Vat). This obviously reduced my net pay by roughly 12% than expected.

I have no deductions that I know of or stated in the payslip besides Parasol admission fee.
Anyone can clarify this here? maybe Parasol ppl?

I did mail them with that question but I thought i might try with you guys to get a prompt response.

Thanks,
Biton

[thunderlizard]

12% is probably the employer's national insurance contributions. If you're set up so that Parasol are your employer, they have to pay that. It's one of those secret taxes that the UK's great at.

Say hi to your brother Cleobis from me,

tl

[biton]

12% is probably the employer's national insurance contributions. If you're set up so that Parasol are your employer, they have to pay that. It's one of those secret taxes that the UK's great at.

Say hi to your brother Cleobis from me,

tl

Hmm...well, in that case, can I set myself as Parasol Employee to avoid that tax?

[Sockpuppet]

You ARE a parasol employee.

Unless you start your own Ltd you cannot avoid that tax. I suggest you search on the best option PAYE, Ltd or Umbrella.

[biton]

You ARE a parasol employee.

Unless you start your own Ltd you cannot avoid that tax. I suggest you search on the best option PAYE, Ltd or Umbrella.

This is definitely Not what I wanted to hear.
With this hidden tax I now pay roughly 50% tax. This is madness!!
I'll examine the option of own ltd straight away. I hope my agency will allow this switch in the middle of a contract.

[basshead]

Checked your tax code?

[thunderlizard]

That's round about what tax is in the UK. 12% ErNI + 12% EeNI + (20% basic rate or 40% higher rate): it soon mounts up.
Even if you were employed by your own limited company, it would be paying 12% NI on salary.

[biton]

Checked your tax code?

Nope. It doesn't state anywhere in the payslip what is my tax code.
Could this be the difference? I was expecting 60% take home and not 50%

[TheRightStuff]

Nope. It doesn't state anywhere in the payslip what is my tax code.
Could this be the difference? I was expecting 60% take home and not 50%

ltd = 80%+.

[VectraMan]

This is definitely Not what I wanted to hear.
With this hidden tax I now pay roughly 50% tax. This is madness!!

Assuming you were an employee before this, it's no different to what you've been paying all along. The difference is employees think they only pay 40%.