New contract- inside ir35 - umbrella help needed New contract- inside ir35 - umbrella help needed - Page 2
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  1. #11

    Fingers like lightning


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    Quote Originally Posted by kingkk View Post
    oh ok .. so i never had pension before as was on ict and now got another visa..
    how much we can save it in pension pot ? and what fees can be considered as normal fees for the umbrella ?

    i read that u can add business expenses and stuff like that .. really confused

    thanks
    You can pay anything into the pension as long as the umbrella keeps you above National Minumum Wage every pay packet (any monies over £40k annual limit will have to be declared via self-assessment).

    The umbrella margin can vary between companies, but as previously mentioned, I wouldn't join based on the margin, speak to the umbrella and make sure you get a good feeling

    Chargeable expense can be put through an umbrella, but likelihood is business expenses are a no go!

  2. #12

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    Quote Originally Posted by kingkk View Post
    So 70% is like max limit... i will call at around lunch time.

    thanks
    Hi kingkk,

    Yes, that is generally the higher end. But again, it depends on your tax code, any salary sacrifice contributions (pension) and if you're a basic rate tax payer or higher rate (where you'll be taxed 40% on income).

    If you're a higher rate tax payer, and you don't put anything away for pension, then expect to retain closer to 60%.


    Quote Originally Posted by kingkk View Post
    oh ok .. so i never had pension before as was on ict and now got another visa..
    how much we can save it in pension pot ? and what fees can be considered as normal fees for the umbrella ?

    i read that u can add business expenses and stuff like that .. really confused

    thanks

    If you travel to multiple sites in a single day, then these temporary workplaces can be claimed for. We can only pay mileage through payroll.

    If you are classed as inside-IR35 then it is likely you will also be under the supervision, direction and control of the client, which means that other expenses (other than mileage to temporary worksites) may not be claimable.

    For more info: Claiming expenses as an umbrella worker


    Kind regards

    Zeeshan

  3. #13

    Nervous Newbie


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    thanks. . so contracting wise contacted and they are claiming to get in hand of 2580 something per week..
    while i can see it cannot go beyond 1650~ per week.

    what these guys do and i think the hmrc will be behind me for that in future ?

  4. #14

    Should post faster


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    Quote Originally Posted by kingkk View Post
    thanks. . so contracting wise contacted and they are claiming to get in hand of 2580 something per week..
    while i can see it cannot go beyond 1650~ per week.

    what these guys do and i think the hmrc will be behind me for that in future ?
    If you think about it logically all the Umbrella do is convert your daily billable amounts to an annual salary and pay it to you, after deducting tax, NI and their fee. So if you want back-of-the-envelope figures of what's possible, just convert your daily rate to an equivalent annual salary and plug it into any of the regular (non-Umbrella) permie salary calculators out there.

    Take your daily rate, multiply by the number of days a year you expect to work, divide by 1.138 to allow for ERNI, and bung the resulting salary into a calculator.

    For example, if you're on £500/day and expect to work 220 days in a year, you get:
    500 * 220 / 1.138 = £96,660.
    Tap that into a salary calculator and you get £5,383/month.

    This is not 100% accurate but it's very close indeed. The Umbrella fee will then come off this.

    If an umbrella calculator is quoting you more than this then either they are assuming you'll work a lot more days, or they are doing something dodgy!

  5. #15

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    Quote Originally Posted by kingkk View Post
    thanks. . so contracting wise contacted and they are claiming to get in hand of 2580 something per week..
    while i can see it cannot go beyond 1650~ per week.

    what these guys do and i think the hmrc will be behind me for that in future ?
    Hi kingkk,

    A take home of £2500~ per week? On £600 per day?

    No chance. There's something else going on here.


    Kind regards

    Zeeshan

  6. #16

    Nervous Newbie


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    Quote Originally Posted by DolanContractorGroup View Post
    Hi kingkk,

    A take home of £2500~ per week? On £600 per day?

    No chance. There's something else going on here.


    Kind regards

    Zeeshan
    yes even i thought so..

    so it is too good to be true kind of stuff .. as it seems way high..
    can you pls provide the calculation for 70% in hand as mentioned before ?

    thansk

  7. #17

    Fingers like lightning


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    On £600 per day, your take home should be around £1,685 on a weekly basis, so about 56% unless you have pension - 70% is highly unlikely for a 40% tax payer.

  8. #18

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    Quote Originally Posted by kingkk View Post
    yes even i thought so..

    so it is too good to be true kind of stuff .. as it seems way high..
    can you pls provide the calculation for 70% in hand as mentioned before ?

    thansk
    Hi kingkk,

    If you were a basic rate tax payer, then you could look closer to 70%. However, your advised rate will bring you into the higher rate tax bracket, so this will sit closer to 60%.

    Hope this helps.

    Send me an email and I'll have some calculations sent over.

    Kind regards


    Zeeshan

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