Danbro Umbrella including Employers NI in Gross taxable?? How???

[sidknows]

thanks for that and I guess thats your way off saying I have'nt got a clue

Perhaps you can offer an explanation of the calculator



Danbro PAYE Umbrella illustration

Gross Weekly Income £937.5
Weekly Expenses £18 ____________
Gross Taxable Pay £919.5


Deductions
Income Tax £153.01
Employers NI £91.99
Employee's NI £68.94
Danbro Fee £18
Total deductions £331.94
____________
Net Pay £587.56
Expenses Reimbursed £18 ___________
Weekly Take home £605.56
Percentage Take Home 65

[ASB]

thanks for that and I guess thats your way off saying I have'nt got a clue

Perhaps you can offer an explanation of the calculator



Danbro PAYE Umbrella illustration

Gross Weekly Income £937.5
Weekly Expenses £18 ____________
Gross Taxable Pay £919.5


Deductions
Income Tax £153.01
Employers NI £91.99
Employee's NI £68.94
Danbro Fee £18
Total deductions £331.94
____________
Net Pay £587.56
Expenses Reimbursed £18 ___________
Weekly Take home £605.56
Percentage Take Home 65

At a rough guess somebodys other expenses happen to be equal to the s fees.

[sidknows]

i deliberately did not input any expenses at all and this is the calculation that came out and the £18 is their weekly fee

[LisaContractorUmbrella]

thanks for that and I guess thats your way off saying I have'nt got a clue

Perhaps you can offer an explanation of the calculator



Danbro PAYE Umbrella illustration

Gross Weekly Income £937.5
Weekly Expenses £18 ____________
Gross Taxable Pay £919.5


Deductions
Income Tax £153.01
Employers NI £91.99
Employee's NI £68.94
Danbro Fee £18
Total deductions £331.94
____________
Net Pay £587.56
Expenses Reimbursed £18 ___________
Weekly Take home £605.56
Percentage Take Home 65

It looks as though their fees are deducted from the gross - the balance being subject to tax and then also adding the fee to the PAYE deductions which effectively means that their fee is deducted from your gross pay twice. The figure is then added at the end to correct.

HTH

[sidknows]

can they do this and do all umbrellas do this as it seems a bit weird?

is this allowed ?

[NotAllThere]

i'm not really familiar with the umbrella company calculations ,so I just had a quick look at the danbro calculator out of curiousity


According to them the fees for their services are reimbursed to the contractor in full ie 18 a week charge is added back to the net pay

Am I missing something here ?

The reimbursement isn't coming out of their funds, it's coming out of yours.

[Bluebird]

all it means is that their fees are a tax-deductable expense - which is what any business woud do.

[ASB]

all it means is that their fees are a tax-deductable expense - which is what any business woud do.

I must admit to being surprised that a brolly believes it's fees to be tax deductible. Any idea on what basis they (in general) believe they are ?

I don't see it happens to pass wholly, necessarily and exclusively. I doubt they are on the prescribed list of "professional organizations" either.

[sidknows]

Income
Expenses



Employers NI 94.18
Employees NI 62.06
Employee Tax 170.37
Total All Tax 326.62
Fees 19.95
Total Net Income 590.93

here's the calc from contractor umbrella with the same criteria -- no expenses
Small difference in fee of 1.95 and a lower take home pay by 14.63

Danbros' is higher i guess because of the double calc of the fees
Perhaphs lisa can clarify this fo us as to which is correct way as this was my query as to whether they can do it --

if it is correct why are contractor umbrella not doing as well as their contractors will take home more ?

[Bluebird]

I must admit to being surprised that a brolly believes it's fees to be tax deductible. Any idea on what basis they (in general) believe they are ?

I don't see it happens to pass wholly, necessarily and exclusively. I doubt they are on the prescribed list of "professional organizations" either.

yes, I see your point.

I was thinking from a Ltd Co point of view that the accountancy fees are tax deductable, however with a brolly it shoulsn't work that way should it ?

It could be that "Danbro" the accountants are a seperate entity from "Danbro" the employer...