Hello, I am due to start work next week and have registered with an Umbrella Company, this is the first time I've used them and have to say after reading through some of the posts on this forums it has saved me from making a possibly huge mistake. The company I signed up with have added around £194.05 worth of fees per week. My daily pay will be £121 and the illustration I have been given is:
Your net weekly salary: £457.91
Weekly Personal Mitigation Fund: £34.55
I think the company have inflated the figures a bit, I have registered with them today but quite sure that I do not have a leaving fee. Does those figures look correct? Will the net be less if I do not have these expenses which I wont have? Many Thanks
This is a calculation based on 810L tax code and assuming that you have no expenses:
Employer's NI 52.33
Employee's NI 45.50
Employee Tax 73.35
Total All Tax 171.18
CU Margin 27.50
Total Net Income 403.76
Do you have a breakdown of the calculation from your umbrella company - it is possible that an amount has been included for expenses that you are not actually entitled to claim or, alternatively if this is a calculation based on specific information, it may be that you are not working on a standard tax code or you have missed pay periods.
Thank you for you reply, They advised of £100 mileage and £94.05 food?
So, would you be travelling 220 miles each week and spending £18+ per day on food?
Then the calculation you have been given is totally incorrect and if they do put through those expenses without you having incurred them you will be in dead trouble with HMR&C. If the umbrella company was recommended to you it may be an idea to let the recommender know.