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New contract inside IR35 via brolly

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    #1

    New contract inside IR35 via brolly

    Hello

    I have just been offered a contract inside IR35 via brolly.
    I am trying to understand the process and papers involved between myself, client, agency and the brolly as well as what is my take home pay but it's unclear around NI employer and Levy taxes

    The end client offered me the job verbally
    The agent didn't send me any contract or assignment schedule confirming rate, length etc..He just wrote me an email upon my request saying: "I’m pleased to confirm your offer from COMPANY X for a 6-month contract (inside of IR35) at the discussed rate of £400/day. Please confirm that you’re happy to verbally accept pending paperwork. This will act as your offer letter – the contract will be more detailed.
    The agent put me in touch with the brolly to set me up. Brolly sent me the paper for contract of employment to be filled in as well as an income statement illustration. On the illustration my day rate is paying for employer NI and Apprenticeship Levy. Obviously that's a big cut... more than 10%

    So on one side the agent/client offered me a day rate of 400£ day but from the Umbrella illustration it looks like more of a rate of £320 days after deducting NI employer and Levy taxes.
    I have asked the agent who is paying the Employer NI. His answer "I don't know if the client would pay for it" and in my head I'm like " but you have offered me a £400 day rate via email, not £320 and you haven't clarified this point with the client upfront". So except chasing the agent to get a clear answer or walk away, is there another formal document to ask from the agent where I could see the contract offer details with the assignment rate and my daily rate? Any other suggestion?

    Lastly am I going to get a contract as well from the agency? Or I just have a contract with the Brolly ?

    Thank you lads
    Tags: None
    #2
    The agent is tulip.

    He should have told you your actual day rate after he sorted out any employer's deductions with the client.

    Then your contact should come from the umbrella as they are your employer.
    "You’re just a bad memory who doesn’t know when to go away" JR

    Comment

      #3
      That’s not all - I suspect that a nice juicy commission is about to wing his way.

      First of all, make sure that you are choosing a legitimate umbrella
      https://www.contractoruk.com/forums/...-umbrella.html
      because £320 out of £400 doesn’t sound right to me - that’s 80% and well into dodgy territory to me. I would expect that figure to be around £220 - £240 (55% - 60%).

      And yes, you are expected to pay for Employer’s NI - welcome to the new world of contracting.
      "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

        #4
        Originally posted by SueEllen View Post
        The agent is tulip.

        He should have told you your actual day rate after he sorted out any employer's deductions with the client.

        Then your contact should come from the umbrella as they are your employer.
        I agree with you he is terrible....
        Also agree he should have worked out everything upfront with the client but he didn't....But I am sure he is not the only one right now working that way i'm afraid...

        Ok so the only contract I will have is the one from the brolly thanks.

        Is he not supposed to send me an assignment schedule detailing everything (rate length etc)? I guess this is what he will send to the Brolly anyway no?
        How to put pressure to get clarity around this? Is the client legally forced to pay Employer NI and Levy tax?

        Comment

          #5
          Originally posted by cojak View Post
          That’s not all - I suspect that a nice juicy commission is about to wing his way.

          First of all, make sure that you are choosing a legitimate umbrella
          https://www.contractoruk.com/forums/...-umbrella.html
          because £320 out of £400 doesn’t sound right to me - that’s 80% and well into dodgy territory to me. I would expect that figure to be around £220 - £240 (55% - 60%).

          And yes, you are expected to pay for Employer’s NI - welcome to the new world of contracting.
          Sorry that's £354 not £320 ^^ so 11% ish... It's not on the illustration paper provided by the brolly, only £400 is displayed - I worked it out myself

          The brolly is Sapphire and I found them in your list so all good.

          Are you sure you have to pay Employer's NI from your rate? Have heard some clients pay for it but looks like they are very rare...

          Is there a way to make sure the agent doesn't try to F*** me by saying that the client is not paying NI employer where he is paying? Again any documents to ask to the agent clarifying rates and taxes?

          Thanks

          Comment

            #6
            You will be employed by the umbrella. The only contract you have is your one of employment with the brolly which will stay in place however many clients you have. The client has the contract with the brolly. So its client-->brolly-->you. You have no contractual relationship with the client.

            Did you have the choice of brollies or was it a list from the agent? Did you check their pension arragenments to see if you could have your pension paid to your SIPP?

            Sapphire have been mentioned on here before.

            Someone having problems with pension payments
            https://www.contractoruk.com/forums/...ml#post2682207

            And Sapphire not furloughing
            https://www.contractoruk.com/forums/...ml#post2762729

            So I do a quick bit of ringing around before signing anything.
            Last edited by northernladuk; 8 February 2021, 19:59.
            'CUK forum personality of 2011 - Winner - Yes really!!!!

            Comment

              #7
              Originally posted by philgo View Post
              S

              The brolly is Sapphire and I found them in your list so all good.
              In whose list - I don't think CUK has a list of recommended umbrellas - merely umbrella firms that pay to advertise on it.
              merely at clientco for the entertainment

              Comment

                #8
                Your £400 is the rate, brolly takes it cut, then all other costs taken out (including employer NI & apprenticeship) etc. 55% is around £240 for your take home pay (pensions & valid expenses can affect this though)
                Last edited by anonymouse; 8 February 2021, 20:23.

                Comment

                  #9
                  Originally posted by northernladuk View Post
                  You will be employed by the umbrella. The only contract you have is your one of employment with the brolly which will stay in place however many clients you have. The client has the contract with the brolly. So its client-->brolly-->you. You have no contractual relationship with the client.

                  Did you have the choice of brollies or was it a list from the agent? Did you check their pension arragenments to see if you could have your pension paid to your SIPP?

                  Sapphire have been mentioned on here before.

                  Someone having problems with pension payments
                  https://www.contractoruk.com/forums/...ml#post2682207

                  And Sapphire not furloughing
                  https://www.contractoruk.com/forums/...ml#post2762729

                  So I do a quick bit of ringing around before signing anything.
                  What about the agent in the process?

                  Don't have the choice of the umbrella. Don't know yet about the pension arrangement

                  Comment

                    #10
                    Originally posted by eek View Post
                    In whose list - I don't think CUK has a list of recommended umbrellas - merely umbrella firms that pay to advertise on it.
                    First of all, make sure that you are choosing a legitimate umbrella
                    https://www.contractoruk.com/forums/...-umbrella.html

                    Comment

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