Am i paying too much Tax?

[bigmaz]

Hi

I am a contractor, and I go through an Umbrella Company. I have never really understood how it all works, I just know I get a wage at the end of every week. But I took time just to see how much i get in my pocket per hour after tax and Umbrella company fees. Basically, I am on 20.70 per hour, and after a 37.5 hour week, i get the equivelant of £13.42 per hour in my pocket, I thought this seems pretty low. Does this figure seem right to you guys?

Kind Regards

[Torran]

I have never really understood how it all works,

Just an idea but should you not find out?

Basically, I am on 20.70 per hour, and after a 37.5 hour week, i get the equivelant of £13.42 per hour in my pocket, I thought this seems pretty low. Does this figure seem right to you guys?

yup seems about right. 65-70% being the norm

[Svalbaard]

Yes this seems about right - approx 65% after you deduct:

Employers NI
Employees NI
Holiday pay
Tax
Umbrella fees.

Who is your umbrella?

[Zippy]

You are not really on 20.70 an hour as employers NI has to be taken off before you get to personal taxation.

[BrilloPad]

Have you thought of applying to other umbrellas and asking how much you would take home with them?

[PhilAtBFCA]

Umbrella Company Net Income

Bigmaz

You could try putting your rates and expenses into the spreadsheet here, there is a video to help you too.

I quickly did some numbers ( no expenses ) and came ot with £13.73 net, but assumed 48 weeks a year worked, so it depends on your actual situation.

It was interesting to note that in this scenario you would be financially better off ( more net income ) running your own VAT Registered Ltd Company ( Inside IR35 ). But the decision to run your own business should not just be for financial reasons at all.

Phil

[MPwannadecentincome]

we are all paying too much tax and with the nation debt ballooning we are doomed to do so for ever more............

[Meades & Co]

spam removed

[BrilloPad]

Bigmaz

If you're interested in receiving up to 85% of the contract value without any more paperwork then send me a pm.

<admin note>Welcome to the forum. PM enabled on your account.</admin note>

Is this some sort of overseas loan scheme? Got a link?

[DiscoStu]

Is this some sort of overseas loan scheme? Got a link?

And why is admin allowing such blatant advertising?