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Reply to: Comparison of umbrella calculators
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Previously on "Comparison of umbrella calculators"
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On a side note, not sure how the Umbrella branch of JSA compares to their ltd. accounting, but the later is utter garbage.
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Agree with Mal - without knowing the basis of the calculations we can't answer but as the PAYE tax figure is lower in the umbrella company figure compared to the CUK calculation, it could be that the umbrella company has assumed that you will claim some expenses even if you have entered zero amounts
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Originally posted by AutomationGuy View PostWhen I use this calculator:
Umbrella Company Tax Calculator
(£375 per day, £110 umbrella fee, 37.5 hours per week, 52 weeks per year, 1000L tax code, no expenses)
... results are as follows:
Total annual income: £97,500.00
Employers NI: £11,781.12
Employee PAYE: £28,623
Employee NI: £5,181.28
Net monthly income: £4,216.18
Using monthly calculator here and matching input data (£375 per day, no expenses):
JSA Take Home Pay Calculator
... results are as follows:
Total annual income: £97,500.00
Employers NI: £10,605.00
Employee PAYE: £22,950.00
Employee NI: £5,210.00
Net monthly income: £4,408.00
For £450 daily rate, discrepancies are even higher: £4,667.35 vs £ 5,173.00.
Main reason for difference seems to be the income tax (employee PAYE). Can you explain me which calculation is correct and why?
The calculators are a pointless comparison since you don't know what they have assumed for the above questions (and a few others). There is only one set of taxation rules for them to follow, so your comparison should be based on how correctly they follow them and what their fees are. Ignore any whose fees are based on your day rate, and any who promise you much more than around 65% net income.
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Comparison of umbrella calculators
When I use this calculator:
Umbrella Company Tax Calculator
(£375 per day, £110 umbrella fee, 37.5 hours per week, 52 weeks per year, 1000L tax code, no expenses)
... results are as follows:
Total annual income: £97,500.00
Employers NI: £11,781.12
Employee PAYE: £28,623
Employee NI: £5,181.28
Net monthly income: £4,216.18
Using monthly calculator here and matching input data (£375 per day, no expenses):
JSA Take Home Pay Calculator
... results are as follows:
Total annual income: £97,500.00
Employers NI: £10,605.00
Employee PAYE: £22,950.00
Employee NI: £5,210.00
Net monthly income: £4,408.00
For £450 daily rate, discrepancies are even higher: £4,667.35 vs £ 5,173.00.
Main reason for difference seems to be the income tax (employee PAYE). Can you explain me which calculation is correct and why?Tags: None
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