Why has my take-home pay increased?

As a contractor, your pay is likely to go up and down depending on the work you’ve been doing. If you’ve noticed an increase in take-home pay that you weren’t expecting, perhaps one of these reasons are behind it:

  • You’ve just had your first pay after a holiday and are on a cumulative tax code, meaning you pay less tax and National Insurance for a while
  • Your tax code has changed, giving you a higher tax-free personal allowance or even a tax rebate. This often happens at the start of a new tax year.
  • You worked more hours or had a higher pay rate than usual, or you received backdated pay for some reason
  • You claimed more expenses than usual
  • You’ve been overpaid