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?
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?
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