Tax Calculator

[Cooperinliverp00l]

Hi People

I'm trying to convince someone to trade through my LTD co and i act as an umbrella company for them. In order to do this i need to give him an example of what they could be taking home.

He is likely to be bringing in (if he works all year) £78,000 so are there any simple calculators,or have any of you got a spreadsheet that i can simple enter in gross turnover and it pumps it through some calculations and tells me what to pay him as net salary.

His contract is very IR35 and he knows he will be paying everything as full salary. I assume he can still put through expenses like train tickets and hotel stays through my company but not sure how that would affect his salary.

Help and advice is always appreciated from your guys

[EqualOpportunities]

Hi People

I'm trying to convince someone to trade through my LTD co and i act as an umbrella company for them. In order to do this i need to give him an example of what they could be taking home.

He is likely to be bringing in (if he works all year) £78,000 so are there any simple calculators,or have any of you got a spreadsheet that i can simple enter in gross turnover and it pumps it through some calculations and tells me what to pay him as net salary.

His contract is very IR35 and he knows he will be paying everything as full salary. I assume he can still put through expenses like train tickets and hotel stays through my company but not sure how that would affect his salary.

Help and advice is always appreciated from your guys

Your accountant may know more about this than us lot...

[VectraMan]

His contract is very IR35 and he knows he will be paying everything as full salary. I assume he can still put through expenses like train tickets and hotel stays through my company but not sure how that would affect his salary.

An umbrella would deduct the expenses before paying the rest of salary. Make sure you do that; you don't want to agree to pay a certain salary and then find you're having to pay expenses.

So roughly it's 78000 - expenses - 13% employers NI = equivalent gross salary.

I can't understand why you want to bother, unless you're making a substantial cut.

[Cooperinliverp00l]

An umbrella would deduct the expenses before paying the rest of salary. Make sure you do that; you don't want to agree to pay a certain salary and then find you're having to pay expenses.

So roughly it's 78000 - expenses - 13% employers NI = equivalent gross salary.

I can't understand why you want to bother, unless you're making a substantial cut.

I am charging for this service and also taking VAT FRS money as well

[Pondlife]

I am charging for this service and also taking VAT FRS money as well

Two of you on that wedge may put you over the threshold for FRVS (£150K) although IIRC you don't have to de-register until £225K.

[TheFaQQer]

Two of you on that wedge may put you over the threshold for FRVS (£150K) although IIRC you don't have to de-register until £225K.

If that's the case, you can argue that this is a one-off, and apply to be allowed to stay in the scheme.

More information on what to do can be found on the HMRC website.

[Cooperinliverp00l]

Thanks

THink i understand

78,000pa - Expenses - admin charge - Employers NI = Gross Salary.

Gross Salary then goes through the useual Employee's Ni and PAYE.

[ASB]

Thanks

THink i understand

78,000pa - Expenses - admin charge - Employers NI = Gross Salary.

Gross Salary then goes through the useual Employee's Ni and PAYE.

What is the legal minimum entitlement for holiday pay and does it include bank holidays. You need to factor that in. If written into the contract of employment then it is possible that "holiday pay rolled up and included" might be OK, but there was a case which makes this practice questionable.

You also need to factor in sick (o.k. you only have to pay SSP but is it reclaimable - depends on the overall size of the payroll). If they are female you might want to consider SMP, and also SPP if male.