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Parasol launches net take home pay calculator for umbrella contractors

Posted Jul 21, 2010

A new take home pay calculator has been launched by Parasol, which provides accurate and transparent net take home pay calculations for umbrella company contractors.

The firm hopes that the new FCSA approved calculator will "help eradicate unscrupulous service providers in the contractor industry by making it difficult for them to substantiate unrealistic claims as to how much take home pay contractors can benefit from under each provider's scheme."

The Parasol calculator does rely on expenses assumptions (which may be inflated elsewhere) to make the take home pay amount more attractive, and includes both net and gross administration fees so contractors know exactly what they are paying for the service up front; making it more difficult for service providers to entice new contractors in with misleading headline rates.

The tool also offers a full breakdown of contractor pay including tax and NI contributions, exactly as each contractor would find on their payslip.

Rob Crossland, chief executive of Parasol, commented:

"Too often in this industry we are hearing of contractors who have had the wool pulled over their eyes about how much pay they can expect working via an umbrella or how much is being deducted by the umbrella for the service. We believe that the added transparency the FCSA calculator offers will make a significant contribution to remove such practices by poorly structured, poorly managed umbrella service providers.

"Claims such as 'take home 90 per cent of your income,' which is the type of claim a number of service providers at the bottom end of the market typically make to lure contractors in, damage the reputation of the industry as a whole and leave a trail of disgruntled contractors who have signed up for something they are highly unlikely to receive. A correctly structured umbrella knows that this claim cannot be substantiated."

You can access the calculator via the Parasol site.

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