UK Tax News from TaxPenny

If you are a contractor working inside IR35 regulations and have your income paid directly to an Umbrella company, you can now use a new online tax calculator to help predict or check your contracts.

Visit the Umbrella Payslip Calculator for Contractors and enter your rate details, the Umbrella company fees, your allowable expenses and either the start and end period on your payslip or the start and end date of a contract you want to evaluate.

The calculator will give you a summary of all deductions and take home pay as well as a summary over the length of the contract.

It can detect bank holidays and weekends and allows contracts that span across more than one tax year.

Calculations are made cumulatively for tax, under standard PAYE methods, and the umbrella model used is the ‘deemed payment’ model which deducts employers national insurance from the deemed payment and then pays the remainder as PAYE.

Deductions for student loans and pensions can be made to help make the result as accurate as possible.

It’s quite easy to use and fast! Give it a try.