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Net amount greater than Gross amount!!!

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rajaninanu
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Posts: 42
Joined: Sun Feb 07, 2010 2:56 pm

Net amount greater than Gross amount!!!

Post by rajaninanu » Sat Apr 21, 2012 6:35 pm

Hello everybody,

While working as a supply teacher I worked for an agency who paid me through an umbrella company. Now for extension I took letter from both of them. One issue is that the gross amount mentioned by both of them dont match. Legally umbrella company is my employer so lets assume I ignore the letter from the main agency.
But the main problem with the letter given by the umbrella company is that the net amount is greater than gross amount. Gross amount is aroud£3900 where as net amount is aroudn£4100. When asked their answer was that my net amount includes my subsistance allowance and travelling expense. Also the gross amount they stated is very less than my actual gross amount

What can I do?

someone guide me please

Thanks
Rajani

rajaninanu
Newbie
Posts: 42
Joined: Sun Feb 07, 2010 2:56 pm

Post by rajaninanu » Sun Apr 22, 2012 11:38 pm

please could anyone give me a reply?

rakeysh.patel
Diamond Member
Posts: 1175
Joined: Mon Mar 23, 2009 1:07 pm
Location: Basildon, Essex

Re: Net amount greater than Gross amount!!!

Post by rakeysh.patel » Mon Apr 23, 2012 6:29 am

rajaninanu wrote:Hello everybody,

While working as a supply teacher I worked for an agency who paid me through an umbrella company. Now for extension I took letter from both of them. One issue is that the gross amount mentioned by both of them dont match. Legally umbrella company is my employer so lets assume I ignore the letter from the main agency.
But the main problem with the letter given by the umbrella company is that the net amount is greater than gross amount. Gross amount is aroud£3900 where as net amount is aroudn£4100. When asked their answer was that my net amount includes my subsistance allowance and travelling expense. Also the gross amount they stated is very less than my actual gross amount

What can I do?

someone guide me please

Thanks
Rajani
I am struggling to understand this. But it appears that, your variance is due to a non taxable income you have as a part of your earnings. This non taxable income seems to be the travel allowance etc you are getting. Bear in mind you can not claim the non taxable income in your application. You may have to write a covering letter explaining what is your taxable income, which realistically matches the bank (credit) statements.
An [Expensive] Immigrant journey has ended 19/08/2015. Good luck to you all out there...

rajaninanu
Newbie
Posts: 42
Joined: Sun Feb 07, 2010 2:56 pm

Post by rajaninanu » Mon Apr 23, 2012 9:12 am

okay, they are saying my net income includes travelling expenses and subsistance allowance, which means my gross income doesnt include it. so I can claim the gross income they have mentioned, it as it doesnt include the non taxable part,isnt it?

Its all so confusing.

rakeysh.patel
Diamond Member
Posts: 1175
Joined: Mon Mar 23, 2009 1:07 pm
Location: Basildon, Essex

Post by rakeysh.patel » Mon Apr 23, 2012 9:30 am

rajaninanu wrote:okay, they are saying my net income includes travelling expenses and subsistance allowance, which means my gross income doesnt include it. so I can claim the gross income they have mentioned, it as it doesnt include the non taxable part,isnt it?

Its all so confusing.
Simple thumb rule - Count the salary that you pay tax on and rest, simply dont count towards your earnings
An [Expensive] Immigrant journey has ended 19/08/2015. Good luck to you all out there...

manojk005
Member
Posts: 247
Joined: Thu Jul 01, 2010 10:17 am

Post by manojk005 » Mon Apr 23, 2012 10:21 am

rajaninanu wrote:okay, they are saying my net income includes travelling expenses and subsistance allowance, which means my gross income doesnt include it. so I can claim the gross income they have mentioned, it as it doesnt include the non taxable part,isnt it?

Its all so confusing.
In your salary slip, they might have mentioned non-taxable salary. I have loan for season ticket, which was included in salary slip as non-taxable and has not claimed points for that.

If these allowances are part of your remuneration and taxed then you can claim these as gross. Though, you may want to get a letter from your employer stating these allowances are part of your remuneration.

John
Moderator
Posts: 12320
Joined: Wed Nov 10, 2004 2:54 pm
Location: Birmingham, England

Post by John » Mon Apr 23, 2012 1:16 pm

If the allowances were taxed then the OP would not be saying that the "net" was more than the "gross".

rajaninanu, expenses are merely that. It is the amount of salary that you need to be concerned with.
John

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