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Negotiating Employer National Insurance Contribution

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    Negotiating Employer National Insurance Contribution

    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

    #2
    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
    merely at clientco for the entertainment

    Comment


      #3
      Originally posted by eek View Post
      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...

      Comment


        #4
        Originally posted by cwah View Post

        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.
        Last edited by northernladuk; 21 April 2021, 12:09.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

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          #5
          it's tough game now...

          Comment


            #6
            Originally posted by cwah View Post
            it's tough game now...
            Yeah but I don't think we factored in agency stupidity/lies reaching new highs
            'CUK forum personality of 2011 - Winner - Yes really!!!!

            Comment


              #7
              Umbrella has to pay the employer NI.period.

              Comment


                #8
                Originally posted by RobScott View Post
                Umbrella has to pay the employer NI.period.
                ... out of your rate for the job. Pay attention.
                Blog? What blog...?

                Comment


                  #9
                  Plus the apprenticeship levy to pay

                  Comment


                    #10
                    Originally posted by anonymouse View Post
                    Plus the apprenticeship levy to pay
                    You avoid that by going with a mini umbrella


                    (joke)

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