Hi all,
first time with umbrella with a new inside ir35 contract. (boomed).
I am thinking of putting the maximum amount per month into SIPP leaving me with only minimum wage.
Umbrella gave me the following calculation
day rate £450.
4 weeks £9000.
Margin £60.
SIPP SS - £7098
taxes and 2xNICs+AL = 129+114+148 (rounded)
Net pay 1449
They also said SS can be upto 83%, but in the above example it is 79.xx%.
What am I missing?
If I want to get MNW it must be 150h*£8.72=£1308 less personal tax+eeNIC. So I get less than 1308 net.
I understand there will be some overhead in form of erNIC+AL on the NMW, lets say 14.5% of £1308=£189.
This is crude because no NICs on < £8300.
So why dont they offer
SIPP SS of 8940-189-1308=7443 for SIPP SS?
first time with umbrella with a new inside ir35 contract. (boomed).
I am thinking of putting the maximum amount per month into SIPP leaving me with only minimum wage.
Umbrella gave me the following calculation
day rate £450.
4 weeks £9000.
Margin £60.
SIPP SS - £7098
taxes and 2xNICs+AL = 129+114+148 (rounded)
Net pay 1449
They also said SS can be upto 83%, but in the above example it is 79.xx%.
What am I missing?
If I want to get MNW it must be 150h*£8.72=£1308 less personal tax+eeNIC. So I get less than 1308 net.
I understand there will be some overhead in form of erNIC+AL on the NMW, lets say 14.5% of £1308=£189.
This is crude because no NICs on < £8300.
So why dont they offer
SIPP SS of 8940-189-1308=7443 for SIPP SS?
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