• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

UMBRELLA net pay 52%

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    UMBRELLA net pay 52%

    i joined umbrella few weeks ago, on weekly invoicing. First couple of weeks pay was around 72% of total (days * daily rate). which was the % they mentioned when i signed contract. now its gone down to 52% total perr week. not sure whats going on?

    is this average take home from umbrella (52%).

    #2
    You can't claim your parking back anymore.

    /thread
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #3
      But back to on on a more serious note, with a liberal smattering of abuse and ridicule.

      How difficult is it to do the following?

      Search for an umbrella calculator such as this one.
      Contractor Take Home Pay & Expenses Calculator | Parasol

      Type in your daily rate. TIP: If that is too difficult then get your kids to do it for you.

      From a 2500 gross it gives you a take home of 1427.

      Work out the percentage. Believe me this one is very tough to do so I can't even begin to explain how to do that to you so just trust me.
      It's 57%

      And hey presto.

      They figure will vary depending on your tax code as you likely have contracting income to consider as well. There are no pension payments considered either. To get the actual figures most normal people would have gone to their employer (that's the umbrella to you in case you were going to post a question asking who your employer is) and asked them for a break down of your individual circumstances.

      I haven't got my crayons with me to try explain how this is calculated for you but a quick look at the tax thresholds in the link below should give anyone with a modicum of common sense an idea that there is no way you are taking 70% home from an umbrella.
      Income Tax rates and Personal Allowances - GOV.UK

      The link below goes in to the details of where your money actually goes. If the kids aren't sick of your stupid questions then get them to explain it to you.
      Umbrella Company take home pay: What should you retain?

      I know squat about umbrellas so it's all probably rubbish and I know I used some big complex words and long sentences but I hoped that helped.
      Last edited by northernladuk; 1 April 2020, 05:05.
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        Or alternatively .. Just ring them and ask them Wtf is going on.

        We assume it's a reputable FCSA approved one that the agent recommended?
        Last edited by northernladuk; 1 April 2020, 05:01.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

        Comment


          #5
          Originally posted by Darren_Test View Post
          i joined umbrella few weeks ago, on weekly invoicing. First couple of weeks pay was around 72% of total (days * daily rate). which was the % they mentioned when i signed contract. now its gone down to 52% total perr week. not sure whats going on?

          is this average take home from umbrella (52%).
          You'll need to provide more specific details (without the need to give personal information away) for anyone here to help you. But, unless you're doing any sort of salary sacrifice, around 55% sounds about right. The previous 72% may have been due to a different tax code (eg, if you hadn't provided them with a P45).

          What did illustrations based on your day rate show? You did ask for one before signing up, yes?
          Last edited by Paralytic; 1 April 2020, 10:24.

          Comment


            #6
            52% after a couple of weeks at 72% does sound right - it's just equalling things out and it will constantly change as that is how the calculations seem to work.

            Take home should be about 55% if you aren't doing salary sacrifice into a pension and at least it sounds about right.
            merely at clientco for the entertainment

            Comment


              #7
              Maybe they gave you two weeks fee free?

              Comment


                #8
                I agree - somewhere around 55% is pretty much it.

                And don't forget tax on salary each month is calculated by working out the tax owed on total earnings this tax year and deducting what's already been paid. so some early adjustments are bound to happen.
                Blog? What blog...?

                Comment


                  #9
                  Originally posted by malvolio View Post
                  I agree - somewhere around 55% is pretty much it.

                  And don't forget tax on salary each month is calculated by working out the tax owed on total earnings this tax year and deducting what's already been paid. so some early adjustments are bound to happen.
                  He can't forget something he doesn't know anything about.
                  'CUK forum personality of 2011 - Winner - Yes really!!!!

                  Comment


                    #10
                    Originally posted by northernladuk View Post
                    He can't forget something he doesn't know anything about.
                    He does now, so I'm merely asking him to remember it from now on, since it's likely the situation will repeat if he changes umbrellas..

                    Is English your first language?
                    Blog? What blog...?

                    Comment

                    Working...
                    X