In the UK, Pay As You Earn Tax is the system that HMRC uses to collect Income Tax and National Insurance Contributions (NICs) from employees' pay as it is earned. The amount due is calculated by your employer according to HMRC regulations then deducted from your earnings before being paid to HMRC each month.
If you chose to operate via a Limited Company, you will be taking on the responsibility of registering for PAYE with HMRC, unless you are outside IR35 which is becoming increasingly difficult. Not only will you have to make PAYE payments to HMRC each month, you will also have to retain money in the company for corporation tax and, maybe, VAT. Late filing of any of these tax payments will give rise to fines and also interest payments on the debt.
ContractorUmbrella can relieve you of all of this stress and hassle as we take care of all PAYE and VAT payments to HMRC you won’t even have to complete a self-assessment tax form for the income that you earn whilst on assignment with us – so why not let us make your life that little bit easier?
If you have any questions about the figures produced by the Take Home Pay Calculator, then please contact our team on 01206 591 000 or email us at firstname.lastname@example.org.
NB. When comparing calculators on umbrella service websites you must ensure that you are comparing like with like and a detailed breakdown should be available on request. The only variable factor in your net pay is the Umbrella Company margin, all other figures are determined by HMRC regulations. Beware of hidden 'employment costs' for the AWR being passed on to you.
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