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If you’re new to contracting, you may not know what a contracting take home pay calculator is, and why it’s important to planning out your financial year. You’ll soon discover that if used correctly, it can help plan your finances and set you up with a better chance to estimate your weekly or monthly income, to help with tax payments and other necessities throughout a year.
If you wonder how different rates of pay could make a difference to your yearly income, using a take home pay calculator will show just how much you could be taking home each month. So, if you are negotiating a rate of pay with a new client, this is a great tool to plan ahead.
Our take home calculator is easy to use, simply enter your rate of pay per hour or day, and whether you get paid weekly or monthly and the calculator will work out the rest.
The assumptions are based on the following, when calculations are made:
Umbrella• No Supervision, direction or control on any assignment during the tax year.You receive a tax refund from HMRC after the tax year end on any expenses incurred but not reimbursed during the year. The refund amount is included as an average weekly or monthly amount.
Limited• Flat rate Scheme for VAT has been applied• The assignments worked are not subject to IR35• One Director in the company• Directors Drawings of £8400 per year• Accountancy Fees applied are as per the 2020 Standard Basic Package
Both Calculations• 2018/19 Tax and NIC Rates• Based on 40 hours per week.• Work 52 weeks per tax year (4.3 weeks per month)• Claiming average expenses for an employee working and staying away from home of £200.00 per week.• Full Employee personal allowance per year (tax code 1185L)• You have no earnings from other sources this tax year.
The decision between umbrella and limited is an important one. That's why the expert team at NWM is on-hand to provide unbiased, practical advice to identify the solution that suits your needs and goals.
Whether you want to look after specific areas yourself, or you'd rather leave it all to us, NWM will tailor an option that fits you. Get in touch for an initial discussion and let us help find the best option for you.