Hey All,
A few days ago I posted a question about the legitimacy of 'benefits in kind' scheme. this forum told me in no uncertain terms that this was not a good option. I thank them for this no nonsense approach and advise to stay away from any schemes that are not PAYE.
I am now looking for some more advise/knowledge. I have been gathering quotes from different umbrella companies which are using PAYE and are FCSA accredited. However the figures in the quote seem to be quite different (taking in to account the umbrella company fee). What I want to do is take this gross invoice value, which is my day rate and from that make the necessary deductions so that I am left with what I would be left with if I was taking a salary from a normal permanent job. I thought this would be simple to do and the calculation I did was take the gross invoice value, deduct the employer's ni, payroll fee/UC company fee and employment tax. This, based on my understanding would leave me with the 'equivalent' salary, from which my personal taxes would then be deducted, such as income tax and employee ni. However, when I entered the value after deducting the employer's ni, payroll fee and employment tax in to a online salary calculator I got a lower take home figure than what the quotes were telling me (I didnt add any student loan or other figures to the online calculator and kept the tax code the same as on the quote).
Therefore, my summation is that the way that I am calculating the salary is wrong. can someone please assist and explain to me what the calculation should be to get from gross invoice value to the value which my PAYE salary should be?
I am happy to provide the actual quote figures. I haven't as I wasnt sure if I am allowed to re. forum rules.
Thanks in advance.
A few days ago I posted a question about the legitimacy of 'benefits in kind' scheme. this forum told me in no uncertain terms that this was not a good option. I thank them for this no nonsense approach and advise to stay away from any schemes that are not PAYE.
I am now looking for some more advise/knowledge. I have been gathering quotes from different umbrella companies which are using PAYE and are FCSA accredited. However the figures in the quote seem to be quite different (taking in to account the umbrella company fee). What I want to do is take this gross invoice value, which is my day rate and from that make the necessary deductions so that I am left with what I would be left with if I was taking a salary from a normal permanent job. I thought this would be simple to do and the calculation I did was take the gross invoice value, deduct the employer's ni, payroll fee/UC company fee and employment tax. This, based on my understanding would leave me with the 'equivalent' salary, from which my personal taxes would then be deducted, such as income tax and employee ni. However, when I entered the value after deducting the employer's ni, payroll fee and employment tax in to a online salary calculator I got a lower take home figure than what the quotes were telling me (I didnt add any student loan or other figures to the online calculator and kept the tax code the same as on the quote).
Therefore, my summation is that the way that I am calculating the salary is wrong. can someone please assist and explain to me what the calculation should be to get from gross invoice value to the value which my PAYE salary should be?
I am happy to provide the actual quote figures. I haven't as I wasnt sure if I am allowed to re. forum rules.
Thanks in advance.
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