Form Page: Take_Home_Pay_1920_design

Calculate Your Take Home Pay

I earn (£)

Every

and get paid

my tax code is

and I would like to

Your likely to take home***

Let us email you the detailed breakdown

Your Name

Your Email

Your Mobile

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*Assumptions have been made to this stage.

1. Weekly is based on 5 days, or 37.5 Hours 2. Monthly is based on 21.6 Days ((5*52)/12) or 162.5 Hours ((37.5*52)/12) 3. Tax code is default 1250L and calculation made on a Week1/Month1 basis (not cumulative).

Your gross**

Open to show

How we work out your take home pay?

Pre-Gross for Tax Deductions

When working through an Umbrella Company, it is standard practice that you (the contractor) absorb the cost of the Employers NI and Pension. In order to mitigate this cost you are required to negotiate your standard PAYE rate up. Working in this way provides you with the benefit of working in a temporary capacity, but with all the benefits of an employed individual.

This field stipulates Primary Threshold (PT) for frequency of pay.

Margin

All umbrella companies deduct a weekly or monthly margin for the purposes of processing your agency pay.

Max Deduction

Capped

Threshold

Employers Pension

Hidden - Gross for Tax

Employers National Insurance

This calculation is based on Gross Pay, less the Employers PT, Less Employers Pension, Less Margin /113.8 *13.8%

Apprenticeship Levy

Currently, Simplify will cover this charge for you and is therefore not used in determining the true gross.

Which works out at a true work rate of

True Gross For Tax

This is important as if you are new to umbrella, or moving from standard PAYE, this value should represent your expected earnings rate (if it doesn't, then you are likely to receive a lower than expected net take-home pay)

Once the above amounts have been deducted from the gross pay, the umbrella company can then calculate the employee tax, NI and Pension liabilities.

Gross for Individual Tax, NI and Pension

Depending upon your tax code (set by HMRC) most individuals will be permitted a personal allowance. This personal allowance is defined by your tax code, for example tax code 1250L will permit an individual to earn £12,500 per year free of tax. Once your earning exceed your personal allowance, there are three bands of income tax. Based on your rate of pay defined above, the tax exemption and tax liabilities are shown below.

Income Tax

Amount to tax

Which band to use?

Monthly

Weekly

Income Tax at 20%

Threshold 0%

Income Tax at 40%

Threshold 20%

Income Tax at 45%

Threshold 40%

Threshold 45%

Total Income Tax Due

Note. This is illustration only. Other factors will be taken into consideration such as your earnings to date. The above is based on a week1/month1 scenario - which in effect means that we treating this scenario as if it was the first week or month in the tax year, with no earnings recevied to date.

Employees National Insurance

Monthly

Weekly

Employees NI

UST

NI applicable at bands

NI DUE

Employees National Insurance

Monthly

Weekly

Which to use?

Employee Pension

Assumptions to determine Gross Pay. Weekly earnings based on days=5 days per week, hours = 37.5 hours per week. Paid weekly is a multiplier of 5 days, whereas paid monthly is 5 multiplied by 52 divided by 12 (so 21.7 days per month).

Code to work out the multiplier

**Gross Pay = Your pay before any tax, national insurance or pension deductions.