Thanks for reading.
My question is essentially what do you guys add into your budgets as a predicted cost for NI & Pension. The accountants (who do our payroll and YE tax) have said 16.6% is standard, and our operations director agrees.
My issue is I have created a GP Calculator for the sales team, using this and then also including a predicted cost for accrued holiday (as in this work cover will be needed when a member of staff is on AL)
The argument has now come between the sales team and SMT that the holidays and a markup of 16.6% create too high of a price for the company to gain sales (CEO agreed 30% GPM)
My issue looking at this is that I wonder if the 16.6% is supposed to be inclusive of accrued holiday as a standard.... and that it is simply a coincidence that it is similar to 13.8 (NI) + 3%(Pen)... No one seems to know the exact breakdown for this and have believed it to be a 'standard'....
I would like to know what you guys think as I do believe it is coming out higher due to allowances in NI (Not up on Tax here (I'm Man.Accounts, hence why I ask advice of the Fin. accountants).
Any ideas or feedback on this would be great.