How do I calculate/check my Umbrella payslip?

[youngguy]

This is semi linked to the thread here https://forums.contractoruk.com/umbr...parasol-2.html


My clown of an (ex) Umbrella has now given me three sets of payslips, all of which are different and none of which appear correct to me (eg they got my pension contributions wrong on one set, so the Net cannot be correct).

How do I calculate payslips myself? I've used calculators but they all, understandably, give different figures due to different assumptions. The same figures can be a few hundred quid out, which is not accurate enough for my purposes.

I know the main deductions (AL 0.5, NI 13.8 etc etc) but I can't work out which deduction comes first and what order they are done in (eg gross-pension-tax-AL?). I can't even get the AL the same as what I see on payslips of Umbrella calculators!

[eek]

It's painful

But quickest way is to assume the Earnings for NI / Tax figure is correct (I'll call it x)

Then Employer NI is 0.138*(x-170) - that 170 is the weekly allowance (think it's 752 if monthly)
Apprenticeship levy is 0.005x (no allowance)
Employer pension has lower and upper limits but is 0.003x (but allowances may come into effect).

And x + the various figures above should equal invoice value - umbrella margin

However it's parasol so it rarely does...

[SimonMac]

This "should" give you a close calulation, it's not perfect as it doesn't reflect the taper in tax free allowance above £100,000 but it gives me a number only a couple of pounds out of my umbrellas payslip

https://docs.google.com/spreadsheets...it?usp=sharing

(Eek ping me your google account address and I will add you as an editor so you can fix my mistakes as I know you will pick up a few)

[youngguy]

This "should" give you a close calulation, it's not perfect as it doesn't reflect the taper in tax free allowance above £100,000 but it gives me a number only a couple of pounds out of my umbrellas payslip

https://docs.google.com/spreadsheets...it?usp=sharing

(Eek ping me your google account address and I will add you as an editor so you can fix my mistakes as I know you will pick up a few)

Huge thanks to you!

I think your XLS is pretty close. It was within 1% of a few generic calculators I compared to. Unsurprisingly my Umbrella's calcs were 8% out of mine, yours and 3 online calculators I used.

[ensignia]

Although I have enjoyed the thinning of the herd due to IR35, it really is an absolute calamity in virtually every aspect isn't it?

I'm on my second short term Inside contract since 2020, and the one thing that struck me is that the usually predictable act of being paid has seemingly changed forever now.

Forget all the normal issues of being paid late by your umbrella or agency, I'm talking about each Umbrella co providing different calculations before you sign up and when you do get paid, payslips that don't really make sense to anyone with slightly different amounts coming in each week at different times of the day and P45 issues when you finish your contract. All for 48% of "revenue" as well.

[youngguy]

Although I have enjoyed the thinning of the herd due to IR35, it really is an absolute calamity in virtually every aspect isn't it?

I'm on my second short term Inside contract since 2020, and the one thing that struck me is that the usually predictable act of being paid has seemingly changed forever now.

Forget all the normal issues of being paid late by your umbrella or agency, I'm talking about each Umbrella co providing different calculations before you sign up and when you do get paid, payslips that don't really make sense to anyone with slightly different amounts coming in each week at different times of the day and P45 issues when you finish your contract. All for 48% of "revenue" as well.

Yep exactly . I've had more hassle and mistakes in 10 months than my previous 14 years of contracting and most of the contractors I know have had at least 1 issue from the examples you have listed, usually more.

[lucyclarityumbrella]

If you want me to take a look, more than happy to do so

[eek]

If you want me to take a look, more than happy to do so

If you check the other threads it's been resolved after Chris Bryce intervened.