Umbrella Calculator with Pension Contribution

[DolanContractorGroup]

Hi coe123,

There are a few umbrella providers that can work with max pensions. We've been doing this for many years.


Kind regards
Zeeshan

[lucyclarityumbrella]

I suppose there aren't any expenses anymore so its fairly simple calculation, I wish the Umbrella calculators provide a place to include Pension in the calculators as it is really the only tax saving option available.

Hi Coe123, as you say many don't offer the pension options and providing a calculator online is difficult as there are many variables which could be taken into account like hours worked, minimum wage, living wage, percentages, fixed amounts, tax codes, student loans etc

[coe123]

Thanks both.

I'll call couple of providers on Monday.

I suppose there aren't any expenses anymore so its fairly simple calculation, I wish the Umbrella calculators provide a place to include Pension in the calculators as it is really the only tax saving option available.

[Alf W]

Billable fees - margin - expenses - salary sacrifice to pension - Employers NI = Taxable Income

But, Taxable Income must usually be minimum wage at least.

I'm surprised more of them don't offer salary sacrifice as it's an attractive feature if you are forced to go brolly.

[northernladuk]

Bit pointless really. There are only two providers that will allow you to make contributions up to the max so you are making a model for something that doesn't really exist.

I'd say pick the phone up to Lucy at Clarity Umbrella. I was with Lucy just because of the great pension offering but in the end didn't get to use it. She's years of experience working with this pension model. The others only allow the absolute minimum.

Lucy should give you the figures.

[coe123]

I am looking for a calculator that will help me analyse my take home based on day rate and full use of Pension contribution (£40K/year). I am likely to be in this contract for 2+ years and have sufficient warchest, so need something that gives me the figure for the whole year (with about 48 or 50 weeks working - but that is optional, I can work with 52).

I have looked at several calculators but it is not clear to me as to where does the pension contribution (via salary sacrifice) is deducted from before I get to taxable income -

i.e. Is my taxable income? =
Gross Earnings (Rate * Days worked) - 40K?
Gross Earnings - Umbrella Fees - 40K? (Although this should make huge difference)
Gross Earnings - Standard Deductions (Empl. tax, Employer NI) - 40K?

Or something different.