Been umbrella in public sector for last 5 years.....
New gig coming up and new umbrella needed.
OK there my understanding. The umbrella get the gross amount from the agency and then reverse calculate the 13.5% employer NI which comes off. Then its a "normal" employee type gross salary with normal NI and tax. Right?
I know previously, and I think I'm right, that the pension contributions came out of the gross total. i.e. So BEFORE the employer NI. Which saves paying 13.5% on it?
BUT I remember the last pension person at the brolly telling me it didnt make much difference if it came out as personal contributions.
Anyone understand it? Surely its better to take it out BEFORE you start getting ANY sort of deduction?
New gig coming up and new umbrella needed.
OK there my understanding. The umbrella get the gross amount from the agency and then reverse calculate the 13.5% employer NI which comes off. Then its a "normal" employee type gross salary with normal NI and tax. Right?
I know previously, and I think I'm right, that the pension contributions came out of the gross total. i.e. So BEFORE the employer NI. Which saves paying 13.5% on it?
BUT I remember the last pension person at the brolly telling me it didnt make much difference if it came out as personal contributions.
Anyone understand it? Surely its better to take it out BEFORE you start getting ANY sort of deduction?
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