Negotiating Employer National Insurance Contribution

[cwah]

Hello,

I keep having contact from recruiter telling me inside IR35 contract. None of them have a clue about the employer national insurance contribution when asked.

And often they prefer to ignore me and go to the next candidate instead of trying to get to it.

And when they do, they just say it will be managed by the umbrella company, which I told them someone needs to pay for it, and that's not going to be the umbrella.

So I'm wondering if you guys have any trick to managing these situation? Or shall I assume that any inside IR35 contract means the contract have to fork both the employer and employee national insurance contribution?

Thanks

[eek]

The agency has a budget for the role - that budget can be advertised in 2 ways

1) PAYE - honest but rate looks crap or
2) umbrella / budget rate (rate is high but the employment costs of employer Ni and holiday pay aren’t hidden).

Basically you are asking for a rate increase that doesn’t exist so your choice is take the contract or keep looking

[cwah]

The agency has a budget for the role - that budget can be advertised in 2 ways

1) PAYE - honest but rate looks crap or
2) umbrella / budget rate (rate is high but the employment costs of employer Ni and holiday pay aren’t hidden).

Basically you are asking for a rate increase that doesn’t exist so your choice is take the contract or keep looking

Yeah that's what it looks to be now... so crap. I took an IR35 role without thinking I'd have to pay additional employer national insurance and believing the agency telling me it's only 10% difference pay with LTD...

[northernladuk]

Yeah that's what it looks to be now... so crap. I took an IR35 role without thinking I'd have to pay additional employer national insurance and believing the agency telling me it's only 10% difference pay with LTD...

That's outrageous. That's gotta stop for a starters.

Obviously negotiation is our right but I don't think you can negotiate ENIC as an element. You could negotiate a general higher rate but not the NI as a part if that makes sense. What Eek says make sense so you'll be negotiating the agencies commission or the client rate.

[cwah]

it's tough game now...

[northernladuk]

it's tough game now...

Yeah but I don't think we factored in agency stupidity/lies reaching new highs

[RobScott]

Umbrella has to pay the employer NI.period.

[malvolio]

Umbrella has to pay the employer NI.period.

... out of your rate for the job. Pay attention.

[anonymouse]

Plus the apprenticeship levy to pay

[ladymuck]

Plus the apprenticeship levy to pay

You avoid that by going with a mini umbrella


(joke)