Day Rate and Take Home Pay

So you may have been told that your assignment is now inside IR35, or that you are required to use an umbrella company. If this is the case then you need to make sure that you are looking to achieve the right contract rate for your assignment, one that you are comfortable with.

Working via an umbrella company you need to be aware of the deductions that are taken from the monies received by the umbrella before your taxable salary is calculated (ie the value used to calculate your Employee’s NI and PAYE tax).

Detailed below is a snapshot of a range of day rates and the anticipated take home that you should expect if you are working via an umbrella. Please note we have to make certain assumptions when producing these illustrations.

Take Home Pay Breakdown from £100 per day to £1,000 per day

This includes a standard 1250L tax code on a week 1 basis – this means that we will only take into account a single tax free allowance for this period. We never include any allowance for any expenses for tax relief purposes, and there is no pension included (with Clarity Umbrella you will be auto-enrolled into the our pension scheme 3 months after your assignment start date). We do not look to include any student loan calculations either.

If you do require a bespoke calculation, then please feel free to complete our Bespoke Calculation form and we will be more than happy to provide you with an illustration.

Image by Gerd Altmann from Pixabay

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