Question, working out staff salary for business plan?

[beautician12345]

If I am paying my therapist £15,000 (example only!) Is that the actual amount I need to budget in my business plan?

Do all costs (NI & Tax) come out of that £15,000?

Do I need to account for any additional costs with regards to wages?

Many thanks!!

 

[ssuk]

15k would be what you pay them. Before they get it you would take out tax and ni (hmrc would provide tools to calculate)
Thats the employees contribution.

Then there is an addional tax and.maybe ni cobtribution that you would pay.

So in short you would pay more than the 15k.

If you phone hmrc im sure they will advise you. There employer helpline staff are really approchable iv found.

Sent from my GT-S5830i using SalonGeek

 

[beautician12345]

Thank you! I'll phone them tomorrow morning.

Do you have a rough idea of what percentage it is on top of the 15k?

 

[ssuk]

Not really. I believe you can download a calculator from hmrc. At a guess id say 20% but its just that. A guess.

Sent from my GT-S5830i using SalonGeek

 

[Beansy]

Thank you! I'll phone them tomorrow morning.

Do you have a rough idea of what percentage it is on top of the 15k?

It's about 16%. On £15k pa it would be contributions of roughly £115 (tax) and £86 (NI) pm

 

[beautician12345]

Many thanks!

 

[johnworf]

If I am paying my therapist £15,000 (example only!) Is that the actual amount I need to budget in my business plan?

Do all costs (NI & Tax) come out of that £15,000?

Do I need to account for any additional costs with regards to wages?

Many thanks!!

If you tell them to set up as a limited company - instead of paying them a wage - you would pay there company and you wouldn't have to pay any more than the 15k. They would pay less tax as well as they wouldn't have to pay ni and stuff. basic tax for limited companies is 20%.