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    Default Employer's NI?

    Hi all,

    I am new to contracting and have been thinking about joining Parasol. I used their calculator and shows a return of roughly 60%. But the calculation doesn't include the employer's NI, do I need to pay for the employer's NI and is there any other hidden costs that others have experienced with Parasol?

    Thanks.

    Regards,
    Kevin

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    I just did some calculations in their calculator. It clearly states ( if you click the right buttons for a detailed overview) that Employer's NI is deducted.

    Steve from Parasol often posts on here. So I doubt you will have any problems.

    Also Lisa from Contractor Umbrella posts on here as well. So I doubt you will have problems with them either.


    BTW I'm ltd so I don't know if they are any good personally.

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    Quote Originally Posted by kevinlam View Post
    Hi all,

    I am new to contracting and have been thinking about joining Parasol. I used their calculator and shows a return of roughly 60%. But the calculation doesn't include the employer's NI, do I need to pay for the employer's NI and is there any other hidden costs that others have experienced with Parasol?

    Thanks.

    Regards,
    Kevin
    Hi Kevin,

    Your umbrella company becomes your employer and all registered employers are required by law to pay Employer's National Insurance which is 12.8% (over and above a weekly/monthly threshold). The salary that your umbrella company pays you will be calculated based on the contract rate, the contract being between the agency/client and your umbrella company, less an amount for employer's NI less the umbrella company's margin or fee.

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    Quote Originally Posted by kevinlam View Post
    Hi all,

    I am new to contracting and have been thinking about joining Parasol. I used their calculator and shows a return of roughly 60%. But the calculation doesn't include the employer's NI, do I need to pay for the employer's NI and is there any other hidden costs that others have experienced with Parasol?

    Thanks.

    Regards,
    Kevin
    Hi there

    Just to follow on from Lisa's comment, Parasol don’t take any profit from the rate you are paid by your agency to cover the cost of Employer’s NI, we only take our flat fee, either weekly or monthly, regardless of what you get paid.

    Everything you earn is passed on to you directly.

    When you work on a permanent contract, the Employer’s NI deduction is already factored when calculating your rate. This is why rates are normally higher when you are a contractor.

    You shouldn't have any hidden costs or charges whatsoever working via Parasol. If you have any problems or queires, I am the PR manager so feel free to drop me a line on steven.proud@parasolgroup.co.uk or PM me here.

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    Quote Originally Posted by Steven@Parasol View Post
    Hi there

    Just to follow on from Lisa's comment, Parasol don’t take any profit from the rate you are paid by your agency to cover the cost of Employer’s NI, we only take our flat fee, either weekly or monthly, regardless of what you get paid.

    Everything you earn is passed on to you directly.

    When you work on a permanent contract, the Employer’s NI deduction is already factored when calculating your rate. This is why rates are normally higher when you are a contractor.

    You shouldn't have any hidden costs or charges whatsoever working via Parasol. If you have any problems or queires, I am the PR manager so feel free to drop me a line on steven.proud@parasolgroup.co.uk or PM me here.
    So, just to clarify Steve, what you are saying is that if the contract rate is £500 per day i.e. £2500 per week then you will pay Employer's NI on £2500 less your fee?
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    Quote Originally Posted by LisaContractorUmbrella View Post
    So, just to clarify Steve, what you are saying is that if the contract rate is £500 per day i.e. £2500 per week then you will pay Employer's NI on £2500 less your fee?
    Sorry Lisa, I wasn't clear!

    yes you are correct.

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    Quote Originally Posted by Steven@Parasol View Post
    Sorry Lisa, I wasn't clear!

    yes you are correct.
    Sorry Steve but can you just clarify the 'Contract Rate'
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    Thanks for the help. :-)

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    Quote Originally Posted by LisaContractorUmbrella View Post
    Sorry Steve but can you just clarify the 'Contract Rate'
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    Yes really!!!!

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    Hi Steve,

    Just a quick question regarding the IR35. Do I need to worry about this if I use Parasol as my umbrella company? IR35 looks irrelevant to me if I pay the tax and ni fully (as stated in the Parasol calculator).

    Regards,
    Kevin

    Quote Originally Posted by Steven@Parasol View Post
    Hi there

    Just to follow on from Lisa's comment, Parasol don’t take any profit from the rate you are paid by your agency to cover the cost of Employer’s NI, we only take our flat fee, either weekly or monthly, regardless of what you get paid.

    Everything you earn is passed on to you directly.

    When you work on a permanent contract, the Employer’s NI deduction is already factored when calculating your rate. This is why rates are normally higher when you are a contractor.

    You shouldn't have any hidden costs or charges whatsoever working via Parasol. If you have any problems or queires, I am the PR manager so feel free to drop me a line on steven.proud@parasolgroup.co.uk or PM me here.

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