Premium Charge for simpletons

a quarter

So I will that on any profit once my allowance is used up?

pretty much.

actually, it's a bit less than a quarter. they round it up to 20% of your gross profits, so assuming you're on 5% commission, they'll halve that and charge you the rest - ie 17.5%.

Sounds like one fifth to me.

22.5% fact.

On any given week it can be more than 22.5 % - so above post is not factual.

Does anybody on 5% commission actually pay the PC ?

I vary between 4.4 and 4.7 and pay it.

ss, I would think that the vast majority of PC payers are in the 4 - 5 % commission range.

Close to 5% and paying here.

I'm on 4.6% and paying

Im on 6% not quite sure how all this works?, hopefully I will be paying it this year

4.6% and pay PC just about every week.  To the OP I guess you'd pay on average around £15 a week PC.

I am on 2.21% and don't pay

3.2% and paying. £2,772.99 is my PC bill for January so far.

When it was introduced in 2008 I paid it while I was close to 5% though.

I pay 4.7% and am in profit. Was rather more in profit tbh a couple of months ago. Somebody posted a link to how your own PC is worked out. It looked as though I should have been paying it ( I tend to lay and trade a bit ) but it appeared they had crossed certain things out as not being applicable. I assumed that was because I am obviously a small player.

The Forum Breader,

I would have thought that your query would have been covered in the 450 responses you received to the similar question you posed on 08 October 2010; 19:26 ('Premium Charge Question' thread)?

22.5%.........give or take.

Is it possible for you to pay more than 22.5% of gross profit in a week where you pay the pc? I thought it wasn't but happy to bow to any superior knowledge if there is a situation where this can arise.

Yes it is possible for a pc payer to pay more than 22.5% of their weekly gross profit in charges. The maximum is 26.875% in any given week in which you could still be subject to the premium charge.

Consider the following example:

Total Wins: £1000
Total Losses: £810
Gross Profit: £190
Commission Paid (assume 5% rate): £50
Implied Commission = (0.03*810) = £24.30
Commission Generated = (50+24.30)/2 = £37.15
Other Charges: £0
Total Charges Generated: £37.15
Total Charges Generated/Gross Profit = 37.15/190 = 19.553% (to 3dp)
Premium Charge = (0.2*190)- 37.15 = £0.85

Total Charges Paid (including pc) = 50+0.85 = £50.85

Total Charges(including pc)/Gross Profit = 50.85/190 = 26.76% (to 2dp)

In the thread I referred to in my post above, The Investor provided a table giving the minimum and maximum charges that can be paid by anyone subject to the pc in any given week depending on their commission rate. I will copy it into this thread in a minute.

The Investor

Commission Rate (%)    Max charges paid     Min Charges Paid
5    26.9%    22.5%
4    24.6%    22.0%
3    21.5%    21.5%
2    21.0%    17.2%

* I have included my correction of his typo for the maximum figure for someone on a 5% commission rate (belatedly acknowledged [;)]).

Thanks for that JT45, it all makes sense now, (the max charge not PC).