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Saving 85% TaxForemans (UK) Ltd aims to be the most transparent umbrella company in the market. We, therefore, want to make it easy for you to debunk the myths surrounding increased take home pay.
Saving 85% Tax is possible but it’s not guaranteed. Many Umbrella companies offer the enticing hope of keeping additional high percentages of income within take home pay. These claims need to be looked at carefully to see if the benefit actually applies to you.
You can save 85% of the tax you pay as an employee if:
- You are a basic rate (20%) tax payer
- You have a standard tax code of 944L
- You incur expenses at the very highest levels
- You earn more than £15 per hour
- You work a minimum of 40 hours per week
Based on these factors, the table below shows the benefit of working through an umbrella company like Foremans (UK) Ltd.
|Agency – Employee||Umbrella - Employee||Additional %|
|PAYE Tax deduction||£89.69|| £13.21
|Take Home Pay||£438.19||£546.21||25%|
The tax saving is 85% but there are additional costs incurred in being an Umbrella employee that need to be factored into the calculation. Nevertheless, the overall increase in your take-home pay is still an impressive 25%!
And don’t worry, you will still benefit from increased take-home pay and all the other advantages of working through Foremans (UK) Ltd even if your hours and rates don’t match the example above. Access our free online Tax Calculator to find out how much you could really save!