If I earn 90 pounds a day?

Question

and have to use an umbrella company for my wages to be paid- how much should I earn a week(450 pounds is the gross)
Thanks

I got 304 pounds- what gives? am I on emergency tax??

Answer 1

well 450 x 52 = 23400 a year gross.

so if you put that into this website

http://www.ir35calc.co.uk/PAYE_NI_Net_Salary_Tax_Calculator.aspx

using the standard tax code of 522L, your net pay comes out at £17667 for the year. divide this by 52 and you get £339.75 a week net pay.

if you got £304, its most likely you are on a BR code which means you are taxed at 22% (BR tax code) of your gross amount and not getting your annual personal allowance.

speak to the guys who run the company, they shoul dmake you fill out a P46 form and then send it off to the Inland Revenue so they can get a correct tax code for you.

hope this helps

Answer 2

The umbrella company should have provided you with details of how they calculated the amount. I doubt you are paying emergency tax. It is probably the correct amount.

Don't forget that the gross earnings of £450 per week are not yours. They are the earnings of the company. The operators of the umbrella company will extract a fee for their administration. You then extract the balance in two ways and most schemes use a combination of these.

A salary is paid to you and this is subject to tax and national insurance as with any other employment. The thing to note here is that the company is your employer and has to pay national insurance as well as your contribution.

The balance is subject to corporation tax (at the small companies rate) and what is left can be distributed as a dividend. There is no further tax liability on this dividend unless your total income puts you into the higher rate bracket.

This should all have been explained to you when you started working this way. Did you lose the paperwork?

Answer 3

Maybe around £350.. (tax is about 20%, And there is a small/large fee for umbrella companys)

http://www.eagleumbrella.co.uk/

Edited: Emergency tax, Maybe!, have a look at your tax code. (That will show you if you are on emergency tax)

Answer 4

450 - 20% tax =360 wage minus 17.50 umberella fee = 343.50 a wk