Originally posted by Lance
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If the employee gets £2992.35/week as gross salary (£598.47 x 5), and they've opted out of pension auto-enrolment, that means that the umbrella would pay:
* £14.96 for apprenticeship levy (0.5% of £2992.35)
* £389.48 for employer's NI (13.8% of £2822.35, i.e. the amount that the gross salary exceeds the secondary threshold of £170/week)
That adds up to £3396.79/week, i.e. the umbrella would receive £679.36/day, which isn't a round number.
If the employee opted in for pension auto-enrolment then the pension earnings would be £847/week (i.e. £967 UEL minus £184 LEL), so the umbrella would contribute £25.41 (3% of £847). That would bring the total to £3422.20/week (£684.44/day), so it's still not a round number.
In practical terms, the umbrella would also charge their own margin (probably £15-20/week) but I think the agency could justify omitting that from the calculation if they don't know which umbrella you'll use. Also, I'd expect that to be a vaguely round number.
Taking this from the opposite direction, suppose that the umbrella gets £2992.35/week, how much would the employee's gross salary be? That involves a bit of trial and error, but if I assume that they've opted out of pension autoenrolment and if we ignore the umbrella's margin again, the magic number seems to be £2638.51/week. Add on £13.19 for apprenticeship levy (0.5% of £2638.51) and £340.65 for employer's NI (13.8% of £2468.51), and that brings us back to £2992.35. However, £2638.51/week is about £527.70/day (+ an extra penny somewhere), which still isn't a round number.
I'd guess that they started out with a round number a few years ago, then they've gradually increased it in line with inflation (or similar), and that's why it looks like a weird figure now.
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