Net amount greater than Gross amount!!!

[rajaninanu]

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]

please could anyone give me a reply?

[rakeysh.patel]

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.

[rajaninanu]

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]

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

[manojk005]

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]

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.