Now a contractor will know how much they take home after tax accurately and easily!
There is a free umbrella tax calculator at iknowtax.com
It allows the contractor to enter their daily rate and see a detailed breakdown of the calculation when being paid through an umbrella company.
It allows the user to enter pay rate in hourly, daily, weekly, monthly or yearly.
It also allows the user to enter expense and the umbrella company fee.
The calculations are displayed instantly showing how much pay for employers National Insurance is deducted, holiday fund, expense, and contractors personal tax and NI.
A great rate a contractor gets may not be so great after all as there are many costs to it then an employed person. From the contractors pay; employers NI is deducted, holiday pay is deducted, and umbrella company fee.
Also the contractors do not get sick pay or pension.
This umbrella company tax calculator is a great tool to see what the take home pay will be for a contractor being paid through an umbrella company.
A great way to check instantly and negotiate a good pay rate through the agency before accepting any contract.
Other feature of the tax calculator is the option to select and calculate tax if anyone is self employed/ sole trader.