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IR35 Part Deux, The Hunger

dug dug Follow Mar 06, 2020 · 1 min read
IR35 Part Deux, The Hunger
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So have just received my first ‘mock-paye’ payslip (aka inside-IR35). My first question is down to the wording; what is an “applicable company deduction”. I ask because I thought you were saying my company wasn’t a proper company? Righto, need to get a bit more info on how this is supposed to work.

Confused? I am. Who ya gonna call…

Transaction Amount What is this?
Total umbrella income £3,000.00 This is the amount invoiced by and paid to Umbrellaco Ltd and is made up of hours worked at agreed hourly/daily rates
Margin £80.00 This is the income received by the umbrella for the services provided
Employers NI & Levy £347.70 This is the amount of Employer’s NI and Levy payable to HMRC based on Gross Pay
Employment income £2,572.30 This is umbrella income minus applicable company deductions.
Gross pay £2,572.30 Your gross pay consists of basic pay (based on National Minimum Wage), holiday pay, commission or any other statutory payments (if applicable)
PAYE & NI deductions £416.97 PAYE tax at source and employee’s NI contribution
PAYE employee take-home £2,155.33 What’s left to feed the mortgage and the kids and pay for planes, hotels and sustenance

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Written by dug Follow
Hiya, life goes like this. Step 1: Get out of bed. Step 2: Make things better:-)