Hi,
Just registered and was after some advice.....
I have just started contracting so it's all new to me so please forgive me for not knowing much :/
I have just been paid my first months wages for September (5 week month) I earn £13.30ph and work 39 hours per week. Within September I took 4 days off so as my payslip was generated I was looking at 4 weeks and 1 days worth of pay.
The exact brakedown of my wages is seen here:
Week ending Hours Gross pay
26/09/2010: 17 £226.10
19/09/2010: 39 £518.70
12/09/2010: 39 £518.70
05/09/2010: 39 £412.30
29/08/2010: 39 £518.70 Total: £2194.50
So from this amount I pay £28 per week to my umbrella, (But they owed me 1 week free so instead of £140 its £112.)
So thats £2194.50 - £112 = £2082.50
Within this month I had £502.82 worth of tax free expenses so I take that off before I work my Tax and NI off.
£2082.50 - £502.82 = £1579.68
HMRC also told me normally my tax free allowence should be £539 however I am on an emergencey tax code at the miniute so they explained that I just dont take this amount out to work out the tax and ni.
So,
£1579.68 / 100 x 20 = £315.94 to pay for Tax
£1579.68 / 100 x 11 = £173.76 to pay for NI
Add those together £315.94 + £173.76 = £489.70 So thats what I owe on both tax and NI.
So if Ive worked it out correctly
£1579.68 (taxable amount) - £489.70 (tax and ni deduction) = £1089.98 + £502.82 (readded expenses) = £1592.80 take home pay
Thats the way I would work it out and also thats the way HMRC would do it. (Please if i have gone wrong please let me know where)
-----------------------------------------------------------------------------------
The brakedown on my wage slip:
Payslip:
Gross Payments Statutory Payment £0.00
Basic Pay £978.45
Holiday Pay £118.80
Net Profit Bonus £315.66
Total £1,412.91
Less - Deductions Advances £0.00
Employees Social Security £86.43
Employees Tax £371.35
Student Loan £0.00
CSA Deductions £0.00
Attachment of Earnings £0.00
Total £457.78
Add - Reimbursed Expenses
Phone costs £0.00
Travel £117.82
Accommodation £0.00
Hotel/Business Expenses £0.00
Subsistence £385.00
Stationery £0.00
Training/Other £0.00
Total £502.82
Billable Expenses £0.00
--------------------------------------------------------------------------------
Total Net Pay £1,457.95
--------------------------------------------------------------------------------
Now I know I should expect less due to the emergencey tax code but even with it I find myself £134.85 down.
Also all my calculations (I spent an hour on the phone to HMRC working out what I should have paid and confirmed the calculations i made above should be correct)
Can anyone tell me if I am mistaken and explain why?
The wage slip above shows all pay and deduction amounts, no hidden charges nothing like that.
Sorry for the long winded post but I am just confused to hell about this.
I would greatly appreciate the help.
Thanks in advance
Just registered and was after some advice.....
I have just started contracting so it's all new to me so please forgive me for not knowing much :/
I have just been paid my first months wages for September (5 week month) I earn £13.30ph and work 39 hours per week. Within September I took 4 days off so as my payslip was generated I was looking at 4 weeks and 1 days worth of pay.
The exact brakedown of my wages is seen here:
Week ending Hours Gross pay
26/09/2010: 17 £226.10
19/09/2010: 39 £518.70
12/09/2010: 39 £518.70
05/09/2010: 39 £412.30
29/08/2010: 39 £518.70 Total: £2194.50
So from this amount I pay £28 per week to my umbrella, (But they owed me 1 week free so instead of £140 its £112.)
So thats £2194.50 - £112 = £2082.50
Within this month I had £502.82 worth of tax free expenses so I take that off before I work my Tax and NI off.
£2082.50 - £502.82 = £1579.68
HMRC also told me normally my tax free allowence should be £539 however I am on an emergencey tax code at the miniute so they explained that I just dont take this amount out to work out the tax and ni.
So,
£1579.68 / 100 x 20 = £315.94 to pay for Tax
£1579.68 / 100 x 11 = £173.76 to pay for NI
Add those together £315.94 + £173.76 = £489.70 So thats what I owe on both tax and NI.
So if Ive worked it out correctly
£1579.68 (taxable amount) - £489.70 (tax and ni deduction) = £1089.98 + £502.82 (readded expenses) = £1592.80 take home pay
Thats the way I would work it out and also thats the way HMRC would do it. (Please if i have gone wrong please let me know where)
-----------------------------------------------------------------------------------
The brakedown on my wage slip:
Payslip:
Gross Payments Statutory Payment £0.00
Basic Pay £978.45
Holiday Pay £118.80
Net Profit Bonus £315.66
Total £1,412.91
Less - Deductions Advances £0.00
Employees Social Security £86.43
Employees Tax £371.35
Student Loan £0.00
CSA Deductions £0.00
Attachment of Earnings £0.00
Total £457.78
Add - Reimbursed Expenses
Phone costs £0.00
Travel £117.82
Accommodation £0.00
Hotel/Business Expenses £0.00
Subsistence £385.00
Stationery £0.00
Training/Other £0.00
Total £502.82
Billable Expenses £0.00
--------------------------------------------------------------------------------
Total Net Pay £1,457.95
--------------------------------------------------------------------------------
Now I know I should expect less due to the emergencey tax code but even with it I find myself £134.85 down.
Also all my calculations (I spent an hour on the phone to HMRC working out what I should have paid and confirmed the calculations i made above should be correct)
Can anyone tell me if I am mistaken and explain why?
The wage slip above shows all pay and deduction amounts, no hidden charges nothing like that.
Sorry for the long winded post but I am just confused to hell about this.
I would greatly appreciate the help.
Thanks in advance
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