Your Personal Illustration
These values are for a 1 week period.
You can reduce the amount of tax due by claiming legitimate business expenses. The most common expenses for contractors is travel, which is often allowable from home to site. For example, travel by car to a client's site would reduce your taxable income by up to 40p per mile. See our expenses page for full details.
* The gross amount paid to an umbrella company is greater than the gross salary under agency PAYE. This is because when paying you directly, your agency is responsible for Employers' National Insurance Contributions and 5.6 weeks statutory holiday pay per annum. By invoicing through our umbrella company, all of this cost could be added to your basic rate.
Agency Rate Calculation Tax Year: 10/11
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Calculating The Agency's Annual Rate:
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Agency Rate (per hour):
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£20.00
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Hours (per week):
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37.5
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Agency Salary (per week):
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£750.00
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(rate x hours) |
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Agency Salary (per annum):
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£39,000.00
| (x 52 weeks PAID) |
| |
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Calculating Employer's NIC:
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Salary free of NIC (per annum):
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£5,715.00
|
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Salary subject to NIC (per annum):
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£33,285.00
| (agency salary less NIC free) |
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NIC charged (per annum):
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£4,260.48
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Total Salary Costs (per annum):
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£43,260.48
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Umbrella Company Equivalents:
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Total Salary Costs (per annum):
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£43,260.48
| (total salary costs from above) |
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Rate (per week):
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£932.34
| ( / 46.4 weeks WORKED) |
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Rate (per hour):
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£24.86
| ( / hours) |
This hourly agency rate, does not take into account additional costs (such as statutory sick pay, payroll administration) which would further increase the equivalent umbrella company hourly rate.
