Thinking of using an Umbrella Company? An Umbrella Calculator
may help...
Whether you are new to contracting or an experienced contractor
you may currently be reviewing your options. Many contractors
are now choosing the umbrella company route rather than setting up
their own limited companies and it is understandable. When
using an umbrella calculator, you are able to see what your take
home pay will look like after the necessary deductions have been
made. When you take into account the benefits you receive
with an umbrella company, it is easy to see why this option is
favourable by many contractors. The overall difference in
take home pay (compared with that of setting up a limited company),
still appeals to many when you take into account the fact that your
administration burden will be greatly reduced plus of course, you
will have no IR35 issues to worry about. (This is one less
online calculator to fill in!)
An umbrella calculator is a great way discovering figures
quickly so you don't have to waste precious time going over
calculations to get the figures you need. It is
important however, to ensure that the calculator is taking into
account all the necessary figures ensuring that you are left with
the correct calculation. Some sites tend to try and simplify
them too much meaning important figures can actually be left out or
assumptions made regarding expenses which could give you inaccurate
results.
So, to summarise, if you are currently thinking about taking the
umbrella company route, it's a useful exercise to put some figures
into an online umbrella calculator to see what your potential take
home pay could be. If you are already using an umbrella
company and just want to see what a new project may be worth, again
use an online calculator - they're free and easy to use and it
isn't very often you hear that!