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For future reference, you can always keep an eye on your predicted annualised earnings on your personal tax account online, at least then you can see what HMRC are basing your tax figures on via the...

That would be standard with a second income, they should however have suggested that is that was the case, that you contacted HMRC to adjust your tax code so that the additional tax was taken at...

No idea where the 12.9% comes from but the Employers Nics is 13.8% of the taxable salary and not the gross invoice rate.

:laugh

No idea how that has been calculated either, this should be calculated at 12.07% of your taxable salary, looks like they are basing this on NMW, which they are not allowed to do anymore, needs to be...

If that is the case all I can say is WOW! If the £11,647.00 is your invoice value, then the take home should be around £6,633 assuming a normal tax code. If they are decuting the Employers NICs from...

This only looks at one snapshot in time too - so won't help if it is the pro-rata that is causing the issue.

Just goes to show what I say - it is really important that you speak with the umbrella before signing up, making sure you get a proper understanding of what you are getting. As Eek and Cojak say,...

Dependent on your rate, the umbrella "may" only look based on one stand alone tax period, if you use an online calcualtor this will look over an annual period, as it assumes "employees' will earn an...

Any company that can provide a higher take home is flouting the rules, find out the true reality of it from a legitimate, honest umbrella (:wave:) then decide if you want to take the role or not -...

:wave: as long as you are tax resident here and as you said working from home, then we can help. Drop me a message if you'd like me to talk you through things.

Seems odd, the umbrella should normally check the terms etc before signing it.

That "should" be pretty standard, but there is likely to be a contract addendum that takes the details from the B2B through to you.

Contractual chain is Contractor to Umbrella (Contract of Employment), then Umbrella to Agency (B2B) and Agency to End Client (B2B).

Hmmm I wonder if there is a way to solve this :laugh :wink

Makes for an interesting read, and just means that absolute clarity on deductions and rates are needed from the brolly :)

If they do not repay the holiday pay back it is classified as an unlawful deduction of earnings - so definitely not something that should be happening, I would urge all contractors to check that as...

Yes, as long as you receive £8.72 as your taxable pay the rest can be processed as salary sacrifice. We currently only pay across to our scheme, but are in talks with one SIPP provider to see if this...

:laugh



It's all down to the 336 hours we have to guarantee in any annual period, which equates to around 1 day per week.

Not a problem :smile

On that standard tax code, I would expect it to be as I said. Seems odd with the P45 unless it was from the previous tax year in which case, they should simply apply the...

By our records, using our margin, then £6,650.00 should leave you with a taxable salary of £5,823.28, so yes your figures look correct, although I would expect the take home to be higher at around...

Earnings for the year will be based on the P45 details received, then the taxable salary pro rata'd for the rest of the financial year.

When an umbrella processes the pay it assumes that the...

Anyone do some SEO for our site then? Obviously missing a trick :laugh

The irony when IR35 doesnt apply to brollies!

I have seen it aswell, some companies have been cashing in on the levy figures, which can be substantial. I am guessing that some didn't want to have to explain it when it does finally kick in, but...

Best of luck :smile

:tumble:

Glad to see they are taking note!

The brolly will look at the actual hours worked in the calculations, and then refer to the NICs thresholds to see what applies each time payment is made.

Because on £8.72 per hour, assuming 37.5 hours a week, the annual taxable salary is just over £17k, so above the £12,500 threshold at which tax kicks in.

Apologies it's taken me a while to come back to you, but I think I have figured out the difference for you, and it all comes back to the rate versus the taxable salary. Looking at your figures the...

Best idea is to go down the self employed and if he uses something like Go Simple Tax he can make sure he is managing his tax on a month by month basis. Ad Hoc work doesn't work for a brolly and it...

It will depend on the original day rate as to whether the £70-£80 increase is enough to essentially cover the additional employment costs. That is what I would look at first. If you use our...

If you are at 40% tax payer then yes between 52 and 56% as average, obviously higher if only a 20%er. In all fairness the tax and NI figures even with margin differences are only going to be give or...

The umbrella can run more than one business to business contract for you, but just see what they say in terms of the charges on this in case they are charging a margin for what may be little time...

No-one should be able to net you more, so be very careful that you are comparing like for like figures; sames number of days per period, same tax code.

Good job I don't get offended :laugh

:nerd

Hi curtis, have they given you a specific list you MUST choose from or made specific requirements for your choice of umbrella ie to be FCSA accredited? I have seen some contractors recently challenge...

They may offer different margins to different agencies, just a thought.

I think I know who the agency is - drop me a message if you can and I can talk you through it.
If you want of course :tongue

If they really are quoting the same rate then jump at it, but I will bet that when you look further into it the rates are different.

Agency PAYE - should quote taxable salary (ie only subject to...

Because the rates should be different - the umbrella rate would be subject to Employment Costs and the PAYE rate should not be as this would already have been taken and allocated by the agency -...

I'm speaking with an agency at the moment who is being bombarded by a broker who is pushing the same :tantrum: they don't get to know who the brolly is at that point either :tired
Conversations with...

Day rate increased moving you tax brackets?

They are not on the list of accredited members - so no they are not. They cannot piggyback the other business, it would need to be a separate accreditation - so a bit cheeky of them to try and use...

Was just explaining that MPP is not a warning sign - as for that company, no comment other than take a look at the directors - :eyes

Hi Grant, if you can't use us :cry2:, then I would trust these guys to help make your decision.

MPP or Match Pay Perm is what umbrella companies now have to operate, as they revoked the Swedish Derogation Model. It is the method that means that an umbrella company has to check that the...

Come on then, be interested to see who they are and what's the link?