£598.47/day

[hobnob]

this is very specific rate. Is that likely to be after the ER NICs have been deducted?

I've played around in Excel, and I can't see any obvious cause for this in terms of taxes etc.

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.

[hairymouse]

You remember the ad. It worked.

Only partially, I didn't donate.

[northernladuk]

On a similar note, there's an advertisement for a homeless charity asking you to send a text to donate £29.06. Why that odd number?

You remember the ad. It worked.

[hairymouse]

On a similar note, there's an advertisement for a homeless charity asking you to send a text to donate £29.06. Why that odd number?

[ladymuck]

As its an Architect role, perhaps its 600PD with a deduction for you to bring your own Crayons?

[56samba]

As its an Architect role, perhaps its 600PD with a deduction for you to bring your own Crayons?

[Antman]

I recognised the pounds-value as the uplift from £450 outside to inside?

[Lance]

To be fair I'd be more concerned when I see an inside rate that's a nice round number than an accurate one like this. No reason to I know but it just feels the rate you show has the deductions done and that's the result where a round number would be 'chosen' and I have to ask why it's round and not got pence on it if that makes sense.

that's what I'd think.
Either that or some bright spark decided to make it look like it's not just a made up number.

[northernladuk]

To be fair I'd be more concerned when I see an inside rate that's a nice round number than an accurate one like this. No reason to I know but it just feels the rate you show has the deductions done and that's the result where a round number would be 'chosen' and I have to ask why it's round and not got pence on it if that makes sense.

[malvolio]

More likely your rate with the umbrella PAYE/NICs/AL "deductions" added in.

[Lance]

this is very specific rate. Is that likely to be after the ER NICs have been deducted?
That's all the information.

And no I'm not interested in the role. Just why such a specific day rate. Agency is Malik Shaw.

Lead Infrastructure and Cloud Design Architect
Contracting Authority: NHS Wales
Contract Length: 3 Months with Potential EXtension
Location: Remote
IR35: Inside
Pay Rate to Candidate:
Rate :598.47/day umb Inside ir35