How was my day rate calculated??
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  1. #21

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    Quote Originally Posted by Agent View Post
    Get used to these kind of answers Tom, very few helpful people on these forums...

    Most just say ask your accountant or google it...my advice is ask your accountant and before you do, give it a quick google.

    Good luck buddy
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  2. #22

    TripleIronDad

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    Quote Originally Posted by Agent View Post
    Get used to these kind of answers Tom, very few helpful people on these forums...

    Most just say ask your accountant or google it...my advice is ask your accountant and before you do, give it a quick google.

    Good luck buddy
    Given a decent question, there is massive amounts of help on here.

    What gets people upset is when people have done no reading whatsoever. Or if they answer a question based on given facts. And those given facts then mutate as the thread goes on.
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  3. #23

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    Quote Originally Posted by Agent View Post
    Get used to these kind of answers Tom, very few helpful people on these forums...

    Most just say ask your accountant or google it...my advice is ask your accountant and before you do, give it a quick google.

    Good luck buddy
    So we've given the best answers we can on the information provided, have supplied a worked example, have not got any answers to the questions we asked in return (and I pointed out that being a contractor involves rather more than simply doing the day job - something I've been saying for at least ten years) and we're not being helpful...

    Some people simply can't be helped, sadly.
    Blog? What blog...?

  4. #24
    pr1
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    Quote Originally Posted by Talent Tom View Post
    So, I'm about to start with with a public sector organisation.
    Private sector I'd charge 525pd, which was agreed.
    For background - I'm VAT registered, pay 16.5% corp tax.

    I know they have to deduct tax & NI 'at source', but the figure they've said they'll pay me is 463.11pd.

    Does anyone have any idea how that's been calculated?!
    And will I be liable for any other taxes after it's paid (income, corporate, etc)?
    My guess is they're taking out employers NI/apprenticeship levy but expect you to pay the income tax/employees NI out of what's left

    463.11*5*52=120408.60 "salary"

    plug that into Employer NIC Calculator - Good Calculators gives 15489.67 employers NI due

    and apprenticeship levy of 0.5% on salary = 602.04

    120408.60 + 15489.67 + 602.04= 136500.31

    so it's costing them 135898.27 /52 /5 = 525.00 per day to pay you 463.11
    Last edited by pr1; 9th August 2017 at 07:35. Reason: added apprenticeship levy

  5. #25

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    Quote Originally Posted by Agent View Post
    Get used to these kind of answers Tom, very few helpful people on these forums...

    Most just say ask your accountant or google it...my advice is ask your accountant and before you do, give it a quick google.

    Good luck buddy
    Compared to the staggering value you provide here yourself, you mean

  6. #26

    More time posting than coding

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    Quote Originally Posted by Talent Tom View Post
    So, I'm about to start with with a public sector organisation.
    Private sector I'd charge 525pd, which was agreed.
    For background - I'm VAT registered, pay 16.5% corp tax.

    I know they have to deduct tax & NI 'at source', but the figure they've said they'll pay me is 463.11pd.
    It should be similar to the way that an umbrella calculates it, based on your daily rate our figures are as follows:

    Weekly

    Company Income 2625.00
    Employment Taxes 307.21
    Employee's NI 113.77
    Employee Tax 791.08
    Total All Tax 1,212.06
    CU Margin 29.50
    Total Net Income 1,383.44

    They will be deducting the Employment Taxes (ie Employers NI and Apprenticeship Levy) and they should be taking the Employees NI and PAYE tax, so what is paid to your Ltd company can be taken with all taxes accounted for.

    Removing the Employment taxes from your contract rate and excluding our umbrella margin, your day rate which is subject to Employees NI and PAYE tax is around 463.00 (as they suggest).

    HTH
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  7. #27

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    Make that three worked examples....
    Blog? What blog...?

  8. #28

    More time posting than coding

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    Quote Originally Posted by malvolio View Post
    Make that three worked examples....
    maybe it will sink in now
    Just watching what I say

    We now offer Ltd too, so if you need a company that you can switch between Ltd & Umbrella, just shout!

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  9. #29

    Should post faster


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    Quote Originally Posted by MrMarkyMark View Post
    Compared to the staggering value you provide here yourself, you mean
    You didn't get the irony in my post did you..

  10. #30

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    Quote Originally Posted by Agent View Post
    You didn't get the irony in my post did you..
    No matter, I can assure you there was no irony in my response

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