Parasol’s take home pay and expenses calculator can help contractors and freelancers estimate their take home pay. But first things first: what is PAYE tax?
In the UK, Pay As You Earn (PAYE) tax is applied to any earnings over the tax free limit (subject to change every year). It means the government is entitled to take income tax and National Insurance (NIC) from your salary each month, rather than request that you declare your liability in a tax return and pay tax at a later date – hence the name ‘pay as you earn’. The amount due is usually calculated by HMRC and deducted by the employer, but for freelancers and contractors, PAYE tax is obviously not as simple, and can result in hours of paperwork and potentially some serious mistakes.
PAYE tax for freelancers and contractors
Fortunately, an umbrella company or professional employment organisation like Parasol can take care of it all for you. We are the employer so for contractors or those working as a freelancer, we’ll calculate the PAYE tax and NIC, sort out invoicing and tax payments, and reimburse legitimate business expenses, tax and NIC free. You’ll therefore have much less paperwork to deal with and get your correct payments on time, plus, you won’t have to do a tax return.
Use our PAYE calculator to see how much you can take home after tax as a freelancer or contractor. The take home pay and expenses calculator shows you an estimate of what your payments would be as a Parasol employee – after deducting tax and NIC – by the week, month or year. Of course, for a personalised PAYE calculation based on your predicted expenses, working hours and tax code, you can call us on 0800 458 0818 and we’ll work out a personalised calculation for you.
Our hourly rate and annual salary calculators
While our PAYE tax calculator allows you to find out more about your payments as a Parasol employee, we also have other calculators that allow you to gain a valuable insight into how you can make the most of your money when working with Parasol. These include:
Hourly rate calculator – Receive an illustration of what your desired annual salary works out at as an hourly or daily assignment rate.
Annual salary calculator – The Annual salary calculator provides an illustration of what the hourly or daily assignment rate equates to on an annual basis.If you have experimented with the hourly, annual and PAYE tax calculators, and want to talk further about joining Parasol, you can contact us on 0800 458 0818. We will be able to provide you with a personalised calculation based on your profession, working hours and actual expenses, and provide detailed information about how our support can help your contracting career to flourish.
The perks of joining Parasol
As well as paying and calculating PAYE tax and NIC, we are able to offer our employees a range of benefits, including:
- Free financial advice through Parasol Money
- £20 million insurance package
- Easy online tracking of expenses and timesheets
- A Contract of Employment and all related benefits
Joining Parasol has become a popular choice for those branching out into freelancing and contracting as they get to enjoy unrivalled support, while still having the freedom and flexibility that this lifestyle offers. Starting couldn’t be any more straightforward – simply join Parasol to gain access to the secure online portal, My Parasol, employee support and benefits.