| weekly | monthly | |
assignment income to gross pay calculation | ||
assignment income (this is giant's income and not your gross pay) | £1,500.00 | £6,500.00 |
private pension salary sacrifice contribution note a | -£0 | -£0.00 |
employer national insurance at 13.80% | -£158.30 | -£686.00 |
apprenticeship levy at 0.5% | -£6.61 | -£28.65 |
employer’s NEST pension contribution note b | -£0.00 | -£0.00 |
company margin | -£13.00 | -£56.33 |
business expense note c | -£0 | -£0 |
balance available for gross pay & holiday pay note c | £1,322.09 | £5,729.02 |
gross pay to net pay calculation | ||
gross pay note d | £1,179.09 | £5,109.33 |
pre-paid holiday pay note e | £143.00 | £619.69 |
gross pay including holiday pay | £1,322.09 | £5,729.02 |
employee PAYE note f | -£287.14 | -£1,244.27 |
employee national insurance | -£65.10 | -£282.08 |
employee’s NEST pension contribution note b | £0 | £0 |
net pay including holiday pay | £969.84 | £4,202.66 |
reimbursed business expenses | +£0 | +£0 |
retained income | £969.84 | £4,202.66 |
private salary sacrifice contribution | +£0 | +£0.00 |
net pay plus pension contribution | £969.84 | £4,202.66 |
% retained | 64.66% | 64.66% |
It is important to note that your agency will quote you the limited company rate, which can often be confusing because this is Giant’s income and not yours. To get your actual taxable gross pay rate, there are a number of deductions that need to be made which include; Employer’s National Insurance, Apprenticeship Levy, Employer’s pension (where applicable) and our weekly net margin. The remaining balance is your taxable gross pay, which is subject to PAYE tax and Employee’s National Insurance. The government recognises this confusion and as part of the Good Work Plan, introduced legislation so that agencies must provide all workers with a Key Facts Document detailing these deductions so you can better understand your actual taxable gross pay rate. If you have not received a Key Facts Document from your agency, please request one from them before you start your assignment.
| a. | Salary sacrifice pension contributions save employer’s national insurance and employee tax at your highest rates. For every £2,000 contributed, it costs £1,120 pr £880 for a basic rate and higher rate tax payer, respectively |
| b. | The illustration is based on being opted out of the workplace pension; if you meet the qualifying criteria, you will be auto-enrolled after 9- days and will have the option to opt out after this |
| c. | If your hirer has no supervision, direction or control over you, you can also claim home to site travel expenses subject to completing a questionnaire that validates this |
| d. | Your gross pay is made up of Basic Pay, and a Conditional Payment |
| e. | This illustration is based on holiday being rolled up and pre-paid |
| f. | Takes into account a personal allowance based on 1257L tax code, taxes at basic rate, higher rate, additional rate and a tapered allowance for income above 100K per year |
| g. | Joining the optional umbrella plus package which includes additional benefits increases the weekly margin by £3.75. This will reduce your net income by £2.31 pr £1.91 for a basic and higher rate tax payer respectively |