KAPLA Ltd

The Hybrid Umbrella payment scheme previously known as EDM was introduced because of changes in law. It is possible to be engaged by us as self-employed, but based on this new legislation we have to deduct PAYE and Class 1 National insurance.

Here is a list of definitions from your Pay statement:

1. COMPANY RECIEPTS: your gross hours and rate and the total.
2. COMPANY DEDUCTIONS: The company margin incorporates the 13.8% employer’s national insurance payment plus our margin which equates to £10 per payment.
3. THE EXPENSES: These are the expenses that you have claimed which are offset against your tax.
4. THE OPERATIVE PAYMENTS: This shows your basic pay and the total expenses that have been offset against your tax.
5. PAYE DEDUCTIONS: This is your tax at 20% less your personal allowance and your class 1 national insurance payment.

THEREFORE:
ADD THE TOTAL OF OPERATIVE PAYMENTS TOGETHER
AND DEDUCT THE TOTAL OF PAYE DEDUCTIONS
THAT IS YOUR NET PAY.