Can i consider employer's NI deduction in umbrella company in my gross pay? or after deduction of it ?

Question

in PAYE umbrella company system which one i can consider as my gross pay? i mean from invoice they first deduct umbrella company fees and remaining amount they called gross payment and from gross payment they deduct Employer's NI and rest amount they called Taxable gross from which they deduct my (employee) tax and NI. So among these three amount (invoice, gross payment and Taxable gross) which one do i have to consider as my gross earning?

Answer 1

Employers NI is completely separate to your salary.

Say, for instance, you bill out £1150, and your umbrella company charges you £22, this leaves you with £1128. £128 goes in employers National Insurance, leaving you with a gross salary of £1000. Out of this £1000 you pay your PAYE and employees national insurance (say £310), leaving you with £690 net salary.

In this case, your company will have invoiced £1150. Your gross salary will be £1000 and your net salary will be £690.