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Can't find the right calculator

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    Can't find the right calculator

    It looks like I might be moving to an inside IR35 contract, likely pushed via an Umbrella. It also seems I'll need to account for the employers NI costs.

    I'm struggling to find a calculator that will allow me to do the following:-
    • Enter Gross Annual income (day rate * 5 * 48)
    • Deduct 40k pension (via salary sacrifice)
    • Deduct Employers NI costs & Apprentice Levy (I assume this is calculated after pension costs?)
    • And then deduct the normal PAYE Tax and Employees NI.

    I've searched high and low, and for the life of me can't find an online or Excel calculator for the above.

    Does one exist?

    Thanks in advance...

    #2
    I'd just do it manually as it'll likely be quicker.



    (Day rate x 5 x 48) - 40k = Employment Cost

    Divide Employment Cost by 1.143 = Gross Salary

    Employment Cost - Gross Salary = ENIC + App Levy

    Stick Gross Salary into uktaxcalulators and take the net salary from there.


    Not all brollys allow full Salary Sacrifice though so double check that before you sign up

    Comment


      #3
      Originally posted by DrStrange View Post
      I'd just do it manually as it'll likely be quicker.



      (Day rate x 5 x 48) - 40k = Employment Cost

      Divide Employment Cost by 1.143 = Gross Salary

      Employment Cost - Gross Salary = ENIC + App Levy

      Stick Gross Salary into uktaxcalulators and take the net salary from there.


      Not all brollys allow full Salary Sacrifice though so double check that before you sign up
      Or day rate x 18 (trying to get a better estimate) - 3,333

      And plug that into Clarity's umbrella calculator (and that does pay per week / month rather than day rates).
      Last edited by eek; 5 March 2021, 14:47.
      merely at clientco for the entertainment

      Comment


        #4
        Originally posted by DrStrange View Post
        I'd just do it manually as it'll likely be quicker.


        (Day rate x 5 x 48) - 40k = Employment Cost

        Divide Employment Cost by 1.143 = Gross Salary

        Employment Cost - Gross Salary = ENIC + App Levy

        Stick Gross Salary into uktaxcalulators and take the net salary from there.


        Not all brollys allow full Salary Sacrifice though so double check that before you sign up

        Alternatively calculate

        (Day rate) - (40k / (5 x 48)) = Net daily rate

        Then put the above figure in to one of the many Umbrellas' own calculator as your daily rate

        If you can afford it its best to front load the salary sacrifice, as it 1) Ensures you use most allowance before getting maybe an outside work in the tax year, and 2) Only pay the additional admin fees for the fist months rather than each of the 12 months.

        Comment


          #5
          Thanks everyone, that's really helpful.

          If I go ahead with this, I'll be looking for an Umbrella that offers salary sacrifice into my private pension (with Reassure).

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