Pulse Umbrella – How we calculate your tax
As a contractor, you have the opportunity to take home more of your income each month, but it’s important to make the right choices. It can be a hugely complicated area and at times when you’re busy with work and family commitments, you could end up facing a mountain of paperwork or even a fine from HMRC if you fail to comply with IR35. On the flipside, there are simple alternatives so that you can benefit from higher returns and a life free of administrative stress.
It’s a given that the amount you could save will depend on your personal circumstances. We work in tandem with the Inland Revenue to make this amount as high as it possibly can be within legal parameters – and that’s why we’re such a popular choice for all those searching online for umbrella companies tax.
Pulse Umbrella provides all members with a contractor’s handbook to maximise the amount they can claim on expenses to ultimately, and legitimately, reduce your tax bill.
The main question on contractors’ minds is “How much money will I take home?” At Pulse Umbrella, you can use our online umbrella tax calculator to instantly work out your take home pay. It uses the standard tax code for 2009/10 – 747L – and assumes that you fall inside of IR35. The calculator doesn’t assume any un-receipted expenses or subsistence allowances as these can potentially leave you liable for an additional tax bill and fine.
It’s crucial to bear in mind that your net earnings will be affected by your tax code and the expenses that you can legally claim. An umbrella company tax calculator operates using a standard tax code and a calculator that does not ask for your expenses will assume a figure. Therefore, the calculation will never be wholly accurate as everyone’s expenses are different.
