Tier 2 Sponsor Margin (Advanced level discussion)

[James.Dunlop]

Hi

Technically they don't charge a margin, they employ you and make a profit margin on the work you do.

If they just pay you the SoC code minimum salary, they will probably make a high profit margin. Companies like IBM and Wipro typically charge out staff time at 3+ times the cost of employing the individual doing the billable work.

If they work on a fixed 25% margin, then they will be paying you 75%, which may be a lot more than the SoC code minimum. They would have to pay employer's NI on the whole 75% (excepting only valid tax free items) not just the stated salary.

I hope this helps. I also mention you can probably do slightly better than 25%, but only by 1-1.5% at best

All the best

James