Am I being underpaid or just newbie ignorance.

[Nicklt]

Hi,

I'm new to contracting and I'm getting very confused over my pay.

My weekly pay before deductions is £666. So, I'm into week 2 and each week I get a text from the agency confirming how much they have pad to the Umbrella - which is £799.20, which is the standard weekly rate plus the expenses amount I put in on the Umbrella portal.

But, I get paid £510 a week, which is after deductions and with expenses loaded back on (according to payslip) this is about £2-£5 more that PAYE Woop Woop!

What I'm confused about is where the other £130 odd is going from the £799.20?

Am I missing something?

Thanks.

[Cappuccino]

VAT?

[northernladuk]

A phone to speak to your umbrella on??

They are your employer. Ask them first.

[SpontaneousOrder]

666 - 40% ish tax & NI, + 130 expenses == roughly what you got paid?

[LisaContractorUmbrella]

The difference is the VAT that the umbrella company are obliged to the contract value when the invoice they agency. As a matter of interest what are your expenses each week?