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

[zonkkk]

Unless you have NET rate in the contract I don't see what the problem is?

You agreed on an inside IR35 rate. They retain your taxes. Taxes went up by 1.25%. You get less money in your pocket.

Like everybody else even outside contractors who pay themselves dividends. Wait until after April when corporation tax goes up too... let's all moan and ask for a rate change mid contract.

[gables]

Interesting reading this as the same is being tried with me i.e. reduced day rate by 1.25%. In conversations with the agency (Lorien) they have told me my client (a bank) included an uplift in my rate which catered for the initial rises, in fact apparently both employee and employer so 2.5%. And now the NICs are reducing so the rates are going to as well but only the employers bit hence 1.25%

This was never explained to me when I signed the contract which was after the rises being implemented and as such I see this as a straightforward rate decrease, albeit small. They're implementing the decrease after my contract ends; so for the extension, which has been offered, I'll be looking for the day rate I'm currently on - so we shall see what comes of that.

[Zarniwoop]

Unless you have NET rate in the contract I don't see what the problem is?

You agreed on an inside IR35 rate. They retain your taxes. Taxes went up by 1.25%. You get less money in your pocket.

Like everybody else even outside contractors who pay themselves dividends. Wait until after April when corporation tax goes up too... let's all moan and ask for a rate change mid contract.

Client -> Agency -> Umbrella (my employer) -> Me

The problem is that the agency have seemingly decided them to grant themselves a bit extra per day at my expense. This is a 4-month contract and in September we agreed a specific daily rate, based on precise knowledge of what the client were going to pay and how much of that was VAT. The umbrella calculates my NI, taxes, not the agency - I don't see how it's any of the agency's business.

Do I get to pay less to every supplier of services because they're now paying less NI? I'm not an employee of the agency, and as far as I know they pay my umbrella as a supplier.

Still awaiting a call from the agency to explain this.

Interesting to see that others have encountered similar. I just got a KID from the them (a week late!) which shows my weekly rate unchanged, contradicting the revised contract they sent out. So maybe it's just incompetence...

Paul

[zcapr17]

Unless you have NET rate in the contract I don't see what the problem is?

You agreed on an inside IR35 rate.

Yes, a gross assignment rate, with the client, to be paid to my umbrella.

They retain your taxes.

The client doesn't, my umbrella do.

Taxes went up by 1.25%.

No they didn't. Employer and Employee NICs have in fact both just gone down by 1.25% (as of 6th Nov).

You get less money in your pocket.

That's my issue. I should be getting more in my pocket, not less.

[zonkkk]

That's my issue. I should be getting more in my pocket, not less.

I understand now. Most likely the agency trying it on.

I would talk to the client's hiring manager directly and ask if he is aware of your rate change. If this comes from the agency you have a very good chance to continue on your current rate.

[NotAllThere]

Any concrete advice?

Yes. Don't try to expense an intergalactic cruise in your office.

[NotAllThere]

I understand now. Most likely the agency trying it on.

I would talk to the client's hiring manager directly and ask if he is aware of your rate change. If this comes from the agency you have a very good chance to continue on your current rate.

Exactly this. The hiring manager might say yes... because the agency are charging him more for the same spurious reason.