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Is it legal for an Agency to insist on a contractor Opting-Out of the The Conduct of Employment Agencies and Employment Business Regulations 2003 regulations, for an inside IR35 contract, working via an Umbrella co?
I had thought not, but looking at the Regs, they only specifically mention a...
Yes, I forgot that I had deducted gross expenses (umbrella margin and pension contributions by salary sacrifice to SIPP or workplace pension) - sorry, but well spotted!
g = gross expenses, so
s = (e - g + xr) / (1 + r + L)
"payroll magic"
So the payroll magic is as follows:
e = gross earnings
s = gross salary
Gross earnings (e) is the sum billed by the Umbrella to the Agency for worked days * day rate (or hourly equivalent).
e includes the employER NIC and apprenticeship levy already, so first the gross salary...