Resolve your Concerns:There are generic questions and concerns by every Contractor/Locums so as to make sure they get the maximum possible take home and things can be sorted at the convenience of the Contractors. Below are few of the examples of such questions and concerns for your reference. We hope that these questions will answer most of your questions, and If it doesn’t, we are just a call away.
Why does my take-home pay differ each week?
Your take-home pay could differ if your hours worked or expense claim submissions are different each week. It also depends on whether your tax code is cumulative, and if you have accrued any tax-free allowance from previous periods.
How is my taxable and net pay calculated?
The breakdown of your payslip can be seen as follows:
TAXABLE PAY:The taxable pay is the figure that we use to calculate your PAYE and NI. It differs from your gross pay and is calculated like this:
TAXABLE PAY = (BASIC PAY + HOLIDAY PAY) - (DEDUCTIBLE EXPENSES) - (NIER) - (Benifacts Fees)
NET PAY:Your Net pay is the amount you’re due to be paid and is calculated as follows:
EMPLOYEE TAKE-HOME PAY = (BASIC PAY + HOLIDAY PAY) - (PAYE and NIEE and NIER) - (Benifacts Fees)
How is Employers’ National Insurance calculated?
Employers’ NI is calculated at 13.8% of your taxable pay and includes a weekly tax-free allowance of £153. If your payment structure is monthly, the tax-free allowance would then be £663
How is Employees’ National Insurance calculated?
Employees' NI is also calculated according to your taxable pay. There is a tax-free allowance of £153 per week or £663 per month. These are then followed by the 12% threshold and the 2% threshold
Online salary calculators may be swift and straightforward but they can also be ambiguous as they have to rely on many assumptions based on aspects which may not be related to your job scenarios or income.
To give you much more pragmatic and sensible understanding of the income you are likely to earn as a contractor working with Benifacts Umbrella, please fill the basic details on the below form which will facilitate us to execute the calculation related to you.