PAYE Tax Calculator
PAYE Employment Contracting
BITE offers the facilities for many contractors to PAYE (Pay tax as you earn) through them by being employed by its specialist limited company umbrella service either as a specialist Consultant or as an employee under a Temporary PAYE supply or Umbrella contract. This is an ideal facility for the first time contractor or new arrivals to the UK who do not wish to take on the financial and administrative commitment of running their own limited company. Additional products are then provided for contractors according to their gross earnings and whether they are likely to be outside the IR35 Directive.
With the AWR, the IR35 Directive effective from April 2000 and recent case law from 2008 onwards, for many contractors there may be little or no benefit in operating a limited company and the payroll solution may be the best opportunity (with the accountancy fees it may incur) and the payroll solution may be the best opportunity for them, because it avoids the set up and maintenance costs of running a limited company and provides additional umbrella company benefits.
Contractors and National Insurance
Contractors working through a limited company have to be employed by that limited company. This means they have to pay two types of National Insurance, firstly employers National Insurance, the tax levelled on companies for employing staff (currently 13.8%) and secondly employees national insurance, the tax that employees have to pay for the national health service, pensions etc., currently (12%+2% above £815 per week ) so there area real benefits to reducing this burden through expenses, pensions or dividends.
Anyone working in the UK requires a National Insurance Number (NI No.) This is the means by which certain taxes are automatically deducted from your wages. It is also through this number that any refunds can be traced.
The taxes have to be paid irrespective of your nationality or personal circumstances.
The NI deductions are a government tax that principally provides funds for the UK Health Care and Social services. Currently the NI Contributions pay for hospitals and other aspects of the Health service. It is also used as the basis for state pension and other benefits including job seekers, child benefits etc.
Everyone working in the UK who earns above £92 have to pay their own NI contribution, regardless of their nationality or residency status. NI maybe refunded if you leave the country permanently.
Company Directors and shareholders can claim dividends based on the profitability of the company and these are subject to corporation tax once the dividend exceeds £5k rather than income tax which is now due at the rate 7.5% of Income tax and 32.5% once earnings exceed 45k + (after personal allowance of £11.5k), In each tax year rather than 40% high rate income tax. Dividends do not attract national insurance which can be as high as 24% when company NI and employee’s NI are added together for IT contractors. Dividends need to be paid correctly to legal directors owners and investors in UK onshore companies.
All employees have to pay income tax, which is deducted from your earnings, automatically by your employers payroll department this is known as PAYE and you can see how much from inlandrevenue.gov.uk/rates.
No Job no Training costs guarantee disclaimer: Under the 10 step job search program, we can’t help you get a job unless you regularly visit our offices, attend coaching and mentoring sessions, utilising the support provided to you. We work face to face with real people and you must work with us to help you. If then you don’t gain a job in the agreed time having attended the whole 10 step career coaching programme and used our job search database correctly we won’t charge you a penny and will refund the cost of any training you have undertaken that we have advised you to invest in!
The Three Day Marketing Personal Brand Plan does not carry a no job no training costs guarantee.
However If you purchase one of our training modules separately, attend and are not satisfied with it we will refund your money.
BITE Compliance covers: IT Contracting London UK, IT Consulting London UK, IT Contract work London, IT contract Jobs London, Temporary IT work in London, Temporary IT Jobs in London, working with Freelance Interim Consultants for professional jobs and IR35 and Limited company or PSC Compliance services.
BITE also offers: Contractor marketing and advertising services, CV Marketing services, with how to write an IT Contract CV to produce a Killer contract CV with, IT CV templates and IT CV examples. Your Jobsearch in our London office provides access to the hidden contract job market, career coaching for contractors, and contractor career management services .
BITE is not a visa or employment agency.