IWhat is an IT contractor's gross pay

In case of IT contractors who are paid a daily rate, what exactly is the monthly gross pay?
For example, If I get a daily rate of 250 , can I say that the gross pay per month ( for a 20 day month) is 20 * 250= 5000 pounds ?

Or is the gross pay 5000 - expenses ( travel , subsistense , umbrella company fees, etc) ?

many thanks in advance

I do consulting in another field, but I claimed gross payments from the client, and only excluded the portion of the payments issued as reimbursements. Eg.:

Consulting fees 100
Travel and other incidentals 40
Total payments received 140

In my application, I claimed the 100, but not the additional 40, since those were separate (non-earnings) payments. However, the expenses that I otherwise incurred, say for a new laptop for which I was not separately reimbursed, came out of my consulting fees, and I did not deduct those expenses before claiming earnings.

Hope that helps
AG

It's pay - expenses.

Gross pay is before expenses. Net pay is gross less expenses.

For FLR purposees, HO is only looking for gross pay.

LondonBlonde

No if you are a contractor and offset your expenses against your pay then it's pay - expenses. I think this is the most common scenario.

Say if you get 5,000 and your expenses is 500, then your Gross Pay is 4,500 and you are only taxed against that 4,500.

If you don't offset your expenses or your expenses is reimbursed by your client/umbrella company/whatever then yes you won't deduct it from the pay.

PounceQuick wrote:No if you are a contractor and offset your expenses against your pay then it's pay - expenses. I think this is the most common scenario.

Say if you get 5,000 and your expenses is 500, then your Gross Pay is 4,500 and you are only taxed against that 4,500.

If you don't offset your expenses or your expenses is reimbursed by your client/umbrella company/whatever then yes you won't deduct it from the pay.

Hi Pounce, this is true for Inland Revenue but not for the HO.

In fact, gross pay means before taxes and expenses to the HO. Good for us I suppose as we can claim more against earnings points chart.

LondonBlonde