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Unbrella Scam? - Payslip Expenses

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    Unbrella Scam? - Payslip Expenses

    Is my umbrella scamming me?

    For obvious reasons I will use a hypothetical example of a payslip they provide. The payslip includes my basic rate (e.g. £20 per hour)

    I work 37 hours. So 37 x 20 = £740.
    Petrol expenses of £60 are listed on the payslip under basic rate as 'Expenses (non taxable)'

    From my basic rate of £740, they deduct
    • Salary Deductions (PAYE & NI)
    • Company Margin
    • Employers NI
    • Apprenticeship Levy
      HYPOTHETICAL TOTAL £300


    My Net Pay received is £740-300 = £440

    So where, by slight of hand, have my £60 expenses disappeared to?
    Can anyone explain? is this a scam or am I missing something?

    #2
    Need actual figures as nobody can calculate if right or wrong on made up ones


    Sent from my iPhone using Contractor UK Forum

    Comment


      #3
      Yes they are. Robbing you blind, pulling your pants down, giving you a right good reaming.

      Sucks to be you.
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        I see where the problem is. Your figures must be wrong.

        I work 37 hours. So 37 x 20 = £740.
        Surely that should be 7.5 hours x 1 = £740?
        'CUK forum personality of 2011 - Winner - Yes really!!!!

        Comment


          #5
          They can't magic up £60 to pay you, unless the client is reimbursing your expenses.

          Therefore, they use the £60 to reduce the amount of tax you're paying on your earnings. So, the basis for calculating tax is £740 - £60 = £680.

          Comment


            #6
            Originally posted by JamesC34 View Post
            Is my umbrella scamming me?

            For obvious reasons I will use a hypothetical example of a payslip they provide. The payslip includes my basic rate (e.g. £20 per hour)

            I work 37 hours. So 37 x 20 = £740.
            Petrol expenses of £60 are listed on the payslip under basic rate as 'Expenses (non taxable)'

            From my basic rate of £740, they deduct
            • Salary Deductions (PAYE & NI)
            • Company Margin
            • Employers NI
            • Apprenticeship Levy
              HYPOTHETICAL TOTAL £300


            My Net Pay received is £740-300 = £440

            So where, by slight of hand, have my £60 expenses disappeared to?
            Can anyone explain? is this a scam or am I missing something?

            How much has gone into your bank account?
            Could you detail out all the values for the
            • Salary Deductions (PAYE & NI)
            • Company Margin
            • Employers NI
            • Apprenticeship Levy


            Your problem is that you have given "hypothetical". We'd need all the figures.
            …Maybe we ain’t that young anymore

            Comment


              #7
              Originally posted by WTFH View Post
              We'd need all the figures.
              39-25-36 is a a good figure to start with.
              'CUK forum personality of 2011 - Winner - Yes really!!!!

              Comment


                #8
                Originally posted by WTFH View Post
                How much has gone into your bank account?
                That really doesn't help here - a better question is why are they paying fuel costs and not mileage..

                But without actual exact figures down to the penny we can't help you
                merely at clientco for the entertainment

                Comment


                  #9
                  Silly question perhaps. I assume the £60 is for petrol to somewhere other than your usual place of work?

                  If so, rather than faff around with the tax calculations, they deduct from any legitimate expense from the gross pay so they come out before the tax calculation so in effect they are tax free. And umbrellas always have done...
                  Blog? What blog...?

                  Comment


                    #10
                    Originally posted by malvolio View Post
                    Silly question perhaps. I assume the £60 is for petrol to somewhere other than your usual place of work?

                    If so, rather than faff around with the tax calculations, they deduct from any legitimate expense from the gross pay so they come out before the tax calculation so in effect they are tax free. And umbrellas always have done...
                    As I (and WTFH) have already pointed out we can't deal with hypotheticals and estimates here we need the actual numbers.

                    Without that we can't work out what is going on.

                    And don't forget some umbrellas will hold back holiday pay (and then illegal avoid paying it later - there is an example of an umbrella firm trying to do that earlier this week).
                    merely at clientco for the entertainment

                    Comment

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