In this example we’re going to do £400 a day on a weekly basis (5 day working week), based on a 52 week contract and we’re going to roll up holiday pay to be paid out straight away so you’re in no danger of losing your holidays, this is how Quad always prefers to work.

To start of with £400 a day gives a contract value of £2000 per week.  This is seen as the Umbrella companies income as it is what will be paid to the Umbrella.  We’re not doing any pension in this example so the Employer Expenses that need to be deducted from the £2000 are quite simple:-

Employer NI – £236.12 Umbrella Margin – £20 Holiday Pay – £187.82

You’ll notice that there is no Apprenticeship Levy deduction in this example, thankfully at the current time Quad doesn’t need to deduct for it.  This leaves us with a total of £1556.06 which is available for your Gross Salary.  This amount will be split down on your payslip in to contract pay and profit related bonus but to keep things simple we’ll just keep keep this as one amount.  On top of this you’ll also be paid your Holiday Pay (£187.82), this gives you a total gross salary before any deductions of £1743.88

From this £1743.88 we have to deduct the usual employee obligations, namely Employee National Insurance and PAYE tax.  PAYE is £455.86, NI is £121.30

Once all this is done you’re left with a NET final weekly salary of £1166.72, a return of 58.34%