Having recently finished working through an umbrella company for the previous 12 months, I was able to calculate some stats regarding amount of NI, tax, takehome, etc. I thought it might be useful to share this with the forum, so any newbies can get some idea of what going through an umbrela will give them.
All figures are in £. Percentages are calculated on the total invoiced, so the tax and employee's NI percentages are a bit out compared to what a "normal" employee would pay - if you want an accurate figure of what they should be, calculate the percentage on the gross amount after the employer's NI and umbrella company fee are removed from the amount invoiced.
Amount Invoiced - £67290.00
Description: Amount (Percent)
Umbrella Fee: 2691.60 (4.0)
NI Employer: 6129.75 (9.1)
NI Employee: 2026.74 (3.0)
Tax: 14608.99 (21.7)
Total Deductions: 25457.08 (37.8)
Expenses: 7782.00 (11.6)
Net: 34050.92 (50.6)
Total Takehome: 41832.92 (62.2)
The umbrella company would hold back approximately 8.5% of each payment to go into a holiday fund, which can be drawn out whenever holiday is taken. At the end of the time working through the umbrella company, they paid back any outstanding holiday fund money in full, less any tax/NI of course.
The average amount of time between the invoice being raised by the umbrella company and the money hitting my bank account was 25 days, but that would vary depending on the amount of time taken by the client to pay the invoices.
HTH
All figures are in £. Percentages are calculated on the total invoiced, so the tax and employee's NI percentages are a bit out compared to what a "normal" employee would pay - if you want an accurate figure of what they should be, calculate the percentage on the gross amount after the employer's NI and umbrella company fee are removed from the amount invoiced.
Amount Invoiced - £67290.00
Description: Amount (Percent)
Umbrella Fee: 2691.60 (4.0)
NI Employer: 6129.75 (9.1)
NI Employee: 2026.74 (3.0)
Tax: 14608.99 (21.7)
Total Deductions: 25457.08 (37.8)
Expenses: 7782.00 (11.6)
Net: 34050.92 (50.6)
Total Takehome: 41832.92 (62.2)
The umbrella company would hold back approximately 8.5% of each payment to go into a holiday fund, which can be drawn out whenever holiday is taken. At the end of the time working through the umbrella company, they paid back any outstanding holiday fund money in full, less any tax/NI of course.
The average amount of time between the invoice being raised by the umbrella company and the money hitting my bank account was 25 days, but that would vary depending on the amount of time taken by the client to pay the invoices.
HTH
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