Under IR35 - Capita is charging me Apprenticeship Levy Tax
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  1. #11

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    Quote Originally Posted by SueEllen View Post
    Why is this thread in General?
    I used to think General (as it is under the Contracting category) was for general contracting questions not covered by the other forums, and that the Social forums covered all the fun stuff. That said, this really should be under Accounting / Legal.
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  2. #12

    My post count is Majestic

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    The title and a quick scan of the posts should have cleared that up in seconds. They should rename General Bantz or something though.
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    Probably the easiest thing is to pay the 0.5%, give notice to terminate the contract and offer to start a new contract with an additional 0.5025% on the day rate.
    Where there's muck there's brass.

  4. #14

    Faqqed Off

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    Quote Originally Posted by northernladyuk View Post
    Probably the easiest thing is to pay the 0.5%, give notice to terminate the contract and offer to start a new contract with an additional 3% on the day rate.
    FTFY - if they can try it on, why not the contractor?
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    Old Greg is my bitch's bitch

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    Another option is to knock off 2 1/4 minutes early every day.
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  6. #16

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    Quote Originally Posted by ladymuck View Post
    BTW - your post implies you are putting the invoicing/receipts through your Ltd Co. How are you accounting for the VAT discrepancy between what you charge and what you receive? I asked my accountant and he didn't know!
    Thanks, I wasn't aware of any discrepancy. I'll raise it with my accountant.

  7. #17

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    Quote Originally Posted by nelsonswork View Post
    Thanks, I wasn't aware of any discrepancy. I'll raise it with my accountant.
    Ignore me, see Eek's post which cleared it up:

    Quote Originally Posted by eek View Post
    There is no VAT discrepancy -> you bill 2000 with 400 VAT on top and you receive 400 in VAT.

    The issue is that you don't receive 2000 in payment alongside that 400 in VAT. You only get 1200 of it (rough guesstimate figure) with the rest withhold or paid on your behalf by the agency....
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    Quote Originally Posted by eek View Post
    First question who is paying you personally... To answer your question we need to know the contract hierarchy:-

    public sector client -> Capita -> ???? -> ???? (either your company / umbrella) --> you
    Structure is: Public Sector Client -> Capita -> My LTD Company -> Me

  9. #19
    eek
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    bored now

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    Quote Originally Posted by nelsonswork View Post
    Structure is: Public Sector Client -> Capita -> My LTD Company -> Me
    Capita are therefore deducting the appropriate payments as the levy is based on employers NI payments and Capita is responsible for paying the employers NI part of your IR35 payments. See https://www.gov.uk/guidance/pay-apprenticeship-levy for the rules on how the apprenticeship levy is paid

    As an employer, you’ll have to pay Apprenticeship Levy each month from 6 April 2017 if you:
    Your annual pay bill is all payments to employees that are subject to employer Class 1 secondary National Insurance contributions (NICs) such as wages, bonuses and commissions.
    And to avoid any avoidance lets show how an IR35 contract is now paid:-

    Employers NI deducted from the invoice and paid by the agency directly
    Employees NI paid on your behalf by the agency
    Income Tax paid on your behalf by the agency
    Last edited by eek; 18th May 2017 at 10:35.
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  10. #20

    Respect my authoritah!

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    Quote Originally Posted by SueEllen View Post
    Why is this thread in General?
    Moved.
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