• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Client altering assignment rate due to Health and Social Care / NICs U-Turn

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Client altering assignment rate due to Health and Social Care / NICs U-Turn

    I work for a client on an inside IR35 contact via an umbrella. I have been notified this week that the client are reducing my assignment rate (by 1.23%) due to the government's U-turn on NICs. Their (flawed) logic being that my take-home pay will be unaffected as my umbrella will be deducting less NICs.

    My main issue with this is that I've negotiated my daily rate as part of the overall assignment schedule for 12 months (this was after the NICs reversal was announced). It was never stated that the rate would be linked to NI or Tax rates, nor is there anything in the contract between my client and my umbrella or assignment schedule that suggest they can do this. Additionally, because I'm making use of Salary Sacrifice pension contributions I'm actually paying less NICs than they assume, which means in reality I'm actually worse off after this change.

    I'm looking to understand if it's common practice for clients to be adjusting assignment rates for umbrella workers due to changes in NI and tax rates? Or is my client trying in on?

    #2
    Your client is trying it on.

    This is a change of contract, but you may not have any other leverage to fix other than terminating the contract and walking away.
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
    - Voltaire/Benjamin Franklin/Anne Frank...

    Comment


      #3
      Originally posted by zcapr17 View Post

      I'm looking to understand if it's common practice for clients to be adjusting assignment rates for umbrella workers due to changes in NI and tax rates? Or is my client trying in on?
      It doesn't matter whether it's commonplace or not though does it?

      You have 3 options and only 2 outcomes.:
      • Suck it up buttercup
      • Tell them you won't accept that. You will likely end up sucking it up, or
      • walk away
      See You Next Tuesday

      Comment


        #4
        FCSA mentioned this a few days ago ...

        https://www2.staffingindustry.com/en...rate-cut-63624

        Comment


          #5
          Hello,

          I've just registered as I've been looking for advice on this - the exact same thing has happened to me. Email discussions with the agency have been fruitless - I expected them to acknowledge a mistake but it seems as far as they're concerned lowering my daily rate (without my agreement) is ok/necessary due to the drop in NI.

          So in the loop is Client -> Agency -> Umbrella -> Me

          1. Got a revised contract from the *umbrella* company, with a lower daily rate, sent to them by the agency. First thing I knew about any of this
          2. Queried the agency - they said that NI is dropping by 1.25%. "This will not affect your PAYE rate as this is staying the same, is it the ENIC figure that will be decreasing"
          3. Me - so why do I have a new contract? The umbrella calculates NI, tax, etc, not the agency. Surely agency just pays the agreed daily rate to the umbrella as a supplier.
          4. Much back and forth - they sent me before/after illustrations showing I'd be better off, but both illustrations had my original daily rate.
          5. Now the manager at the agency is gonna call me on Monday (they didn't refute what I saids, but haven't confirmed their logic either).

          To be clear, the change in rate isn't huge, however it wasn't agreed with me or the client. Can agencies unilaterally decide to reduce your pay? Regardless of whether it all works out the same, I should see the benefits of a decrease in NI right?

          I can only assume the agency is not competent enough to know that my NI rates are not their concern, OR, they're chancing it and hoped I wouldn't notice.

          Any concrete advice?

          Thanks,

          Paul


          Comment


            #6
            Same advice applies to you I’m afraid.

            Originally posted by cojak View Post
            Your client is trying it on.

            This is a change of contract, but you may not have any other leverage to fix other than terminating the contract and walking away.
            Originally posted by Lance View Post

            It doesn't matter whether it's commonplace or not though does it?

            You have 3 options and only 2 outcomes.:
            • Suck it up buttercup
            • Tell them you won't accept that. You will likely end up sucking it up, or
            • walk away
            "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
            - Voltaire/Benjamin Franklin/Anne Frank...

            Comment


              #7
              Originally posted by cojak View Post
              Same advice applies to you I’m afraid.
              Yeah I figured. However the agency has not yet been able to articulate their logic, leaving me guessing. I see three possibilities:
              1. They've genuinely screwed up and my contacts at the agency don't understand it properly
              2. They've taken the opportunity to take a bigger cut for themselves of what my client sends them, with the justification that I won't take home less
              3. The client has started paying them less for me and nobody told me
              Suspect that it's #2, in which case I'll have to make a choice. The client is public sector, if that makes any difference.

              Paul

              Comment


                #8
                Originally posted by Zarniwoop View Post

                Any concrete advice?
                Nope, you either accept this, or need to be prepared to walk away as stated above.

                However,
                - Did the Assignment Rate increase when the NI levy was introduced?
                - Could you stall any agreement pending the Autumn Statement?

                It seems odd to me that clients would want to annoy workers over what is a relatively small amount of money - it's hardly going help when they may need workers' goodwill to resolve some problem or other.
                Last edited by Protagoras; 11 November 2022, 19:53.

                Comment


                  #9
                  Unfortunately agents will try anything. They wanted to pay me 21 days after invoice each month for an inside IR35 gig - lucky for me I have a bit of leverage so we have settled on me getting paid weekly, 7 days after invoice*. We recently had an e-mail from the boss of the agency saying anyone on 21 days would be switched to 30 days from December - glad I was in a position not to accept their terms, but of course it doesn't apply in every case. We are employees for tax purposes but stiffed in every other way agencies can think up.

                  *I fully expect to be stiffed on the final week, when I can't use a threat to walk any longer.

                  Comment


                    #10
                    I suspect any agency pulling this trick is going to be in for a surprise as NI rates are once again hiked in the autumn statement.

                    especially if the increase is 2% rather than the 1.25% that was introduced in April and just removed.

                    oh should say my agency is pulling this trick, but given the amount of ammunition I already have on them (lack of KID…) the employment tribunal next year will be fun
                    merely at clientco for the entertainment

                    Comment

                    Working...
                    X