Hi,

I used to be a LTD contractor and just moved to IR35. I got my first payslip but I don't understand it. Can someone explains to me those numbers?

The weekly pay is £3825 based on a 5-day week at £765.

The total paid by the client to the umbrella company is £3825.

Then the umbrella company takes £18 off per week as margin.

But then they say Employer NIC is £437.55 and apprentiship levy is £16.70.

There is also employer pension contribution for £13.08.

And so I am left with a gross pay of: £3339.

Now when I ask the umbrella company how they arrive to that £3339 they tell me they just removed all the figures above from the £3825. But then when I asked them how they calculated employer NIC and the apprenticeship levy, they say they applied the percentages (13.8% for NIC and 0.5% for the apprenticeship levy) on the £3339 .... It doesn't make sense to me that they calculate NIC and levy based on a number that they say they generated using those 2 figures... Which ones come first, it cannot be both.

Anyone understands those numbers??

Thanks.

Jerome

I used to be a LTD contractor and just moved to IR35. I got my first payslip but I don't understand it. Can someone explains to me those numbers?

The weekly pay is £3825 based on a 5-day week at £765.

The total paid by the client to the umbrella company is £3825.

Then the umbrella company takes £18 off per week as margin.

But then they say Employer NIC is £437.55 and apprentiship levy is £16.70.

There is also employer pension contribution for £13.08.

And so I am left with a gross pay of: £3339.

Now when I ask the umbrella company how they arrive to that £3339 they tell me they just removed all the figures above from the £3825. But then when I asked them how they calculated employer NIC and the apprenticeship levy, they say they applied the percentages (13.8% for NIC and 0.5% for the apprenticeship levy) on the £3339 .... It doesn't make sense to me that they calculate NIC and levy based on a number that they say they generated using those 2 figures... Which ones come first, it cannot be both.

Anyone understands those numbers??

Thanks.

Jerome

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