Should i be paying th 12.8% employers NI

[ANSOF]

Hi Quick question... (hope not a daft one)

I recently signed up with Danbro who are on the ball but they told me that i pay normal NI AT 11% and also 12.8%. Should i pay employers NI though?

cheers

[Hex]

Yep. If you don't pay it who do you think will?

[PhilAtBFCA]

Employers NI

ANSOF

I guess you must be using their Umbrella service and so are an employee.

You are not paying Employers NI, but the Umbrella Company is, and it is coming out of the Contract rate you agreed with the Staffing company.

To see how this all fits togeather there is a video and a spreadsheet here, so you can check the calculations.

Phil

[Fred Bloggs]

Can't Danbro tell you? I guess not, eh?

[ANSOF]

cheers phil.

Danbro told me right then, but theres no harm getting an answer from fellow contractors.

[pmeswani]

cheers phil.

Danbro told me right then, but theres no harm getting an answer from fellow contractors.

Don't want to be rude here... but why wouldn't they be right?

[dang65]

Don't want to be rude here... but why wouldn't they be right?

Even Chuck Norris comes to CUK to check he's right.

[pmeswani]

Even Chuck Norris comes to CUK to check he's right.

Is he related to AndyW by any chance?

[Platypus]

Even Chuck Norris comes to CUK to check he's right.

Don't you mean "Cuk Norris" ?

[centurian]

Don't want to be rude here... but why wouldn't they be right?

I'm guessing that ANSOF wasn't expecting to have to pay Employer's NI, because surprise, surprise no-one told him.

So I can imagine it was a bit of a shock to suddenly find yourself paying about an extra 10% tax (the first 5K-odd is 'free') than what he was expecting.

He therefore wants to find out if he's being conned and get our expert opinion.

Sadly is it correct. This is quite common for new contractors going umbrella. The agent doesn't mention it, the umbrella doesn't mention it. This is partly because they are not legally required to, but largely because they want to sucker you in with what seems like higher net earnings than it really is.