hi all,
I'm another one of these Ltd co. contractors being forced to go brolly by end of tax year.
Been trawling forums on the interwebs but haven't found anything which explicity states why (pls point me at one if you can ?) the deductions (NI and tax) are so markedly different based on the same daily rate ?
As expected I am seeing different quotes from each offering, but when I go into the details, sometimes the deductions are different enough to overshadow the diff in margin (umbrella fee) plus apprenticeship levy.
Does anyone have a quick explain on how, using the same tax code and the same basic pay, these guys are arriving at different figures for NI(employer+employee) and Tax(income+employer)?
Are they assuming a different tax bracket even though this should be easy to infer based on the basic pay(?).
edit: will post about the para above on here to ask specific questions, sorry! >> https://www.contractoruk.com/forums/...ey-differ.html
Still curious about the below bit about why PAYE take home pay is lower than brolly though:
Also noticed that even though I am assuming zero expenses and benefits, the agency PAYE take-home pay calcs are actually lower than that off umbrella(a few quid only a week but still), surely the umbrella margin/fee which the agency doesn't charge if I go direct should make it a more expensive option? What am I missing here please?
Quite surprised by this and the agency admitted to me that this is ironic: but seeing this across the board but not much direct mention of this online: perhaps someone could explain or point me at someplace where it has already been discussed ?
I'm another one of these Ltd co. contractors being forced to go brolly by end of tax year.
Been trawling forums on the interwebs but haven't found anything which explicity states why (pls point me at one if you can ?) the deductions (NI and tax) are so markedly different based on the same daily rate ?
As expected I am seeing different quotes from each offering, but when I go into the details, sometimes the deductions are different enough to overshadow the diff in margin (umbrella fee) plus apprenticeship levy.
Does anyone have a quick explain on how, using the same tax code and the same basic pay, these guys are arriving at different figures for NI(employer+employee) and Tax(income+employer)?
Are they assuming a different tax bracket even though this should be easy to infer based on the basic pay(?).
edit: will post about the para above on here to ask specific questions, sorry! >> https://www.contractoruk.com/forums/...ey-differ.html
Still curious about the below bit about why PAYE take home pay is lower than brolly though:
Also noticed that even though I am assuming zero expenses and benefits, the agency PAYE take-home pay calcs are actually lower than that off umbrella(a few quid only a week but still), surely the umbrella margin/fee which the agency doesn't charge if I go direct should make it a more expensive option? What am I missing here please?
Quite surprised by this and the agency admitted to me that this is ironic: but seeing this across the board but not much direct mention of this online: perhaps someone could explain or point me at someplace where it has already been discussed ?
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