Don't understand my umbrella pay slip

[jaymmu]

Hi, I've just started working in a contract role and the recruitment company automatically started paying me through their umbrella company. I've now received my first weekly payslip and am really confused. I understand that I receive my hourly rate, an amount for lunch and my holiday pay. Then tax and NI is deducted which is fine, but then there's a deduction called claimed expenses which is about a fifth of my gross salary.
In total my net wage is coming out at about 60% of the gross figure.

Can somebody explain what the claimed expenses deduction is please?

[SimonMac]

Hi, I've just started working in a contract role and the recruitment company automatically started paying me through their umbrella company. I've now received my first weekly payslip and am really confused. I understand that I receive my hourly rate, an amount for lunch and my holiday pay. Then tax and NI is deducted which is fine, but then there's a deduction called claimed expenses which is about a fifth of my gross salary.
In total my net wage is coming out at about 60% of the gross figure.

Can somebody explain what the claimed expenses deduction is please?

Have you claimed any expenses?!

[jaymmu]

Have you claimed any expenses?!

Yes I've claimed some, but not as much as is deducted. Here's a breakdown of the figures for this week:
Payments
Salary = 542.41
Holiday = 58.54
Subsistence = 30.00
Travel = 42.00

Deductions
PAYE tax = 81.20
NI = 32.10
Claimed Expenses = 194.23

Net pay = 365.42

I was thinking perhaps that the claimed expenses deduction might be paid back monthly, does this sound right?

[mudskipper]

Hi, I've just started working in a contract role and the recruitment company automatically started paying me through their umbrella company. I've now received my first weekly payslip and am really confused. I understand that I receive my hourly rate, an amount for lunch and my holiday pay. Then tax and NI is deducted which is fine, but then there's a deduction called claimed expenses which is about a fifth of my gross salary.
In total my net wage is coming out at about 60% of the gross figure.

Can somebody explain what the claimed expenses deduction is please?

"amount for lunch" and "holiday pay" - this may be where the confusion lies. This is unlikely to be free - you're paying for it - also be aware that it's only claimable if you have a receipt to prove it.

[Greg@CapitalCity]

I think a phone call to your umbrella is in order. £194.23 is a large deduction that you should make them explain to you - I can't see the logic to it myself with the info you have supplied.

[Wanderer]

£194.23 is a large deduction

Yeah. Wow. Did you really SPEND £194.23, like a third of your income on expenses in a week? What were the expenses?

[Support Monkey]

Yes I've claimed some, but not as much as is deducted. Here's a breakdown of the figures for this week:
Payments
Salary = 542.41
Holiday = 58.54
Subsistence = 30.00
Travel = 42.00

Deductions
PAYE tax = 81.20
NI = 32.10
Claimed Expenses = 194.23

Net pay = 365.42

I was thinking perhaps that the claimed expenses deduction might be paid back monthly, does this sound right?

Surely and i could be wrong, why are they paying you holiday, should this not be a deduction that they take then pay it back when you have a holiday (unless you actually took a holiday/day off that week)

and a payment for lunch thats not allowed each day unless you have the receipts to prove it

sound like you would be better going to an umbrella thats legal

[craig1]

Could be Employers NI plus that holiday pay plus their fees.

[jaymmu]

I've never had to submit a receipt for anything apart from parking as I've been told that I automatically get £6 per day for lunch without submitting anything.

In the first week, I didn't even know I was working through an umbrella so I didn't claim any expenses and I still got approx £140 deducted as claimed expenses.

[Sockpuppet]

Have you still not asked your umbrella instead of us guessing?