Umbrella calculations and why they differ! Umbrella calculations and why they differ! - Page 3
Page 3 of 3 FirstFirst 123
Posts 21 to 22 of 22
  1. #21

    Nervous Newbie


    Join Date
    Jun 2017
    Posts
    5

    Default

    Quote Originally Posted by lucyclarityumbrella View Post
    Hi SDR,
    Clarity does look at a 1250L M1 figure so one tax free allowance. However I cannot see that this can be taken into account on the Listentotaxman site, therefore will predict earnings for that site on £120k annualised earnings ie removing substantial tax free allowance in the figures.
    The 1250L M1 looks at an isolated monthly figure rather than annualised.
    Thanks Lucy. So earnings are annualised before calculating employers' NI? It's not as simple as 13.8% of £10,000 less £719 allowance and any other deductions (not sure if there any)? I'm just curious how the Clarity calculator comes up with a figure of £1,108.64 from £10,000 gross monthly pay...

  2. #22

    Fingers like lightning


    Join Date
    Feb 2013
    Location
    Ipswich, Suffolk
    Posts
    816

    Default

    Quote Originally Posted by SDR View Post
    I'm just curious how the Clarity calculator comes up with a figure of £1,108.64 from £10,000 gross monthly pay...
    No, Employers NI is calculated based on taxable salary not your gross contract rate, and to get to your taxable salary you need to know the Employers NI, so it is a bit of "payroll magic" to do the reverse calculation to come up with the end figures!

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •