Really dont understand payslip

[sophia57]

Hello,

Hoping someone can shed some light on why I am receiving so little from my contract. My rate is 250 per day. For two days work I received only £211.44 out of £500....? How is this right? I also had claimed expenses of £200 pounds. Am I better off not claiming expenses, would I have received more then? Very confused

[cojak]

How to understand your payslip as an umbrella contractor :: Contractor UK

[cojak]

Seemingly low pay from umbrella company

[TheCyclingProgrammer]

That doesn't seem right, unless they've deducted your expenses but not paid them to you yet. You should have received the £200 tax free, then from the remainder you would have had deducted the umbrella fee, employee and employer NIC and income tax but I would have imagined you should have had at least £350 from the £500.

£200 seems high for two days, did you have an overnight stay?

[sophia57]

That doesn't seem right, unless they've deducted your expenses but not paid them to you yet. You should have received the £200 tax free, then from the remainder you would have had deducted the umbrella fee, employee and employer NIC and income tax but I would have imagined you should have had at least £350 from the £500.

£200 seems high for two days, did you have an overnight stay?

Hi, thanks for your reply. No my expenses have been for 2 weeks so I submitted 2 weeks worth of expenses. But I only received 2 days pay as my agency pays 2 weeks in arrears. Yeah I received the £211 and also got £200 back tax free. Is that right? I thought that out of the £500 I'd get more?

[SpontaneousOrder]

How much would you expect to retain? 'more' is pretty vague.

£500 - 200 expenses = 300.
300 - tax etc = 211.
211 + 200 expenses = 411.

So you retained over 70% ignoring expenses, and retained about 82% when you include expenses?

[Boney M]

How much would you expect to retain? 'more' is pretty vague.

£500 - 200 expenses = 300.
300 - tax etc = 211.
211 + 200 expenses = 411.

So you retained over 70% ignoring expenses, and retained about 82% when you include expenses?

Sounds about right

[franktouch]

Wouldn't it be easier asking your Umbrella Company!!

[LisaContractorUmbrella]

Hi, thanks for your reply. No my expenses have been for 2 weeks so I submitted 2 weeks worth of expenses. But I only received 2 days pay as my agency pays 2 weeks in arrears. Yeah I received the £211 and also got £200 back tax free. Is that right? I thought that out of the £500 I'd get more?

Why did you think that your take home pay would be more? Your umbrella company should be paying you via PAYE so your earnings are subject to income tax and employee's NIC's plus your umbrella company will have had to pay employer's NIC's and they will have retained a margin from the contract value. This should have been explained/detailed on their website/an explanation provided with the payslip