You will find various salary calculators on websites such as umbrella company calculators, umbrella tax calculator, Ltd company calculators, IR35 calculators and PAYE calculators. These calculators will give contractors a very rough indication of what your take home pay will be because there are many variable factors to consider such as tax codes, expenses, tax rebates, hours, rate of pay etc.
Salary calculators come in many shapes and forms so you need to be careful if this is the sole reason for choosing an umbrella company. Contractors are advised to choose a company based on their compliance and service; as tax and NIC is a deduction which is required to be paid by all UK residents. You should review additional contractor benefits, which is being provided by the umbrella company such as their shopping discounts, professional insurances, and health insurances as this will not be factored into the take home pay.
Make sure the umbrella company does not advise you to over-claim your mileage or any other expenses as although your take home pay will increase - it will be you that is mis-claiming. Ask the umbrella company to carry out a salary calculation based on your personal circumstances and to send you an illustration.
There are alternatives for umbrella companies such as MSC, PSC, offshore companies and composite company which will claim to provide high net returns. Contractors are advised to check the credibility of these solutions by seeking impartial advice.
Thousands of contractors use umbrella company calculators to forecast their take home pay. Whether you are new to contracting, running or own LTD company or already using an alternative umbrella company, try the free umbrella salary calculator to give you an indication of what your take home could be.
To speak to one of our tax experts call 0800 434 6402.
