Hi all,
First time contractor, and first time post. I'm hoping you might be able to help me with something.
The umbrella company I'm going through are helping me be as 'tax efficient as possible'. What I'm really struggling to understand is one of the deductions they're making, and which they have explained they will make every month.
On the payslip there is a £2000 item in the 'deductions' column marked 'Expenses'. This was also reflected in what was paid into my account for the month. On top of that I have £655 for PAYE and £343 for NI. So total deductions from my gross is £2997 for the first month! Keep in mind that I have not yet made an expenses claim.
Now the kicker is that I've actually incurred over £2000 in expenses as I'm working abroad (hotels, travel, etc...).
Do you know why this is the case? Because I'm really struggling to understand why it's both tax efficient or to my advantage for me to receive 47% of my gross pay…
I genuinely hope that this is a case of lack of education on my part and poor explanation on theirs, rather than some horrible error.
===
On a side note I've been calling and writing the company regularly to understand just this point and as a result have only received obfuscated answers to my very clearly set out questions.
First time contractor, and first time post. I'm hoping you might be able to help me with something.
The umbrella company I'm going through are helping me be as 'tax efficient as possible'. What I'm really struggling to understand is one of the deductions they're making, and which they have explained they will make every month.
On the payslip there is a £2000 item in the 'deductions' column marked 'Expenses'. This was also reflected in what was paid into my account for the month. On top of that I have £655 for PAYE and £343 for NI. So total deductions from my gross is £2997 for the first month! Keep in mind that I have not yet made an expenses claim.
Now the kicker is that I've actually incurred over £2000 in expenses as I'm working abroad (hotels, travel, etc...).
Do you know why this is the case? Because I'm really struggling to understand why it's both tax efficient or to my advantage for me to receive 47% of my gross pay…
I genuinely hope that this is a case of lack of education on my part and poor explanation on theirs, rather than some horrible error.
===
On a side note I've been calling and writing the company regularly to understand just this point and as a result have only received obfuscated answers to my very clearly set out questions.
I have emailed you directly.
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