Use Pulse Umbrella’s calculator to estimate your gross pay, PAYE tax and take home pay
You can use our very own UK PAYE calculator to work out your take home pay. There’s a lot to get your head around when it comes to PAYE calculation and gross pay. For in-depth information on PAYE tax calculators and how the system works your first port of call should be HMRC
It’s important that you understand the differences for a pay calculator depending on whether you’re a personal service company, or contracted with an umbrella company.
For umbrella companies, you’ll undoubtedly have seen numerous claims of 80%, 85% or even 90% take home pay and have probably thought this seems too good to be true. And you’re right, it is.
Contractors are able to claim certain expenses when working through an Umbrella Company like Pulse and these are processed as a tax benefit which means that taxable income is reduced by the value of expenses claimed. In a bid to secure your business, some companies will assume a figure for expenses, regardless of whether or not you have actually incurred them, so that they can give you a higher estimated net return.
At Pulse, you will never be misled and we never make assumptions on your behalf. We know that our immense level of expertise and low fees appeal to a huge number of contractors and we’ll never let our standards slip.
If you are running your own PSC outside of IR35, you obviously have to take care of matters yourself and it can be a bit tricky. You are treated as receiving a notional salary on the last day of the tax year (5 April) equal to the company’s gross income from relevant engagements less certain specified deductions. You will have to pay over PAYE and NICs on this notional salary by 19 April and include it on the year end return P35 by 19 May. It is evident that there is very little time to process the calculations, and HM Revenue & Customs have indicated that they will not penalise the use of provisional payments and calculations in order to meet the deadlines. A provisional payment must be finalised by 31 January following to avoid penalties.
The deductions cover expenses that would normally be available to direct employees, contributions to registered pension schemes and the actual salary and employers NIC plus the employer’s NIC on the deemed salary.
