Agency Change - Advice Needed

[eek]

Is employer nic calculated at 13.8% on the entire amount? Also does it qualify for the employer nic allowance?

Not sure, ask an accountant but that could be the reason why the percentage is slightly different.

Is employer nic calculated at 13.8% on the entire amount?

Not quite but not far off. It's 13.8% for everything above the weekly allowance of £166 and below £962 a week and 2% for everything above £962.

Also does it qualify for the employer nic allowance?

No - because the agency or umbrella will have already spent it.

[jayn200]

Is employer nic calculated at 13.8% on the entire amount? Also does it qualify for the employer nic allowance?

Not sure, ask an accountant but that could be the reason why the percentage is slightly different.

[StephenT]

Cheers all.

[eek]

1. Employers NIC is currently charged at 13.8% so I'm loosing out already by just getting a 12.5% increase
2. The Apprenticeship Levy is 0.5% - is that before or after the 13.8% eNIC?
3. Why am I paying the Apprenticeship levy when my Ltd Company will have an income far less than the £3m I believe is the current threshold - why am I having to pay it?

1. Yes you will be
2. it's separate so on top of
3. the levy is something the agency is paying already so they need to deduct it.

Personally the uplift isn't enough but I would ask how much can you put into a pension and if you can afford it use an umbrella company and put a significant percentage into a pension fund (it's just about the only benefit you get with an inside IR35 contract)

[StephenT]

You are incredibly lucky the agency allow you to work thst way. Puts them in the hook if you don't pay your taxes right.

So you are saying the new option is either PAYE or Brolly.... or is the new agency willing continue with the same arrangement as the old one?

Don’t feel lucky when I did the calculations earlier! Lol.

New option is Umbrella, PAYE or continue with my Ltd company. Continue with my Ltd company seems expensive as they are only giving me a 12.5% uplift to take into account eNIC (although that is 13.8%) and they are charging my the apprenticeship levy too (which I don’t think I should be paying). Finally there is also a 1.5% “admin” fee to pay my via my Ltd company.

[StephenT]

https://www.contractoruk.com/forums/...nticeship+levy

Cheers - but that thread doesn’t answer my question. I am getting charged the App Levy through my Ltd Company and am not going through an umbrella at all.

[northernladuk]

You are incredibly lucky the agency allow you to work thst way. Puts them in the hook if you don't pay your taxes right.

So you are saying the new option is either PAYE or Brolly.... or is the new agency willing continue with the same arrangement as the old one?

[TheDogsNads]

Afternoon all.

I'l looking for some advice on my current contract.

Advice would be greatly appreciated.

https://www.contractoruk.com/forums/...nticeship+levy

[StephenT]

Afternoon all.

I'l looking for some advice on my current contract.

For the last 9 months I've been on a contract, Inside IR35, on an hourly rate and all has been well. I've today found out that the agency will be transitioning me over to a new agency and they will pay differently ...

At the moment the hourly rate I get is subject to Employee NIC and TAX before it lands in my Ltd Company account. (Agency took care of Employers NIC etc)
Going forward the new agency are also going to take Employers NIC and Apprentice Levy before also charging me a fee just to pay into my Ltd Company account.

Due to this the end client has agreed to up my rate slightly (Hourly rate has gone up 12.5%)

I am confused, however, on a few things.

1. Employers NIC is currently charged at 13.8% so I'm loosing out already by just getting a 12.5% increase
2. The Apprenticeship Levy is 0.5% - is that before or after the 13.8% eNIC?
3. Why am I paying the Apprenticeship levy when my Ltd Company will have an income far less than the £3m I believe is the current threshold - why am I having to pay it?

We are being given the option of Umbrella or PAYE but I don't really want to do that.

I do other work through my Ltd Company (WebDesign / Consultancy) that gets paid directly into the Ltd Company (That I don't draw a salary from, just my day job as a contractor)

Advice would be greatly appreciated.