Campaign to redirect Employers NI back to the Employer

[rogerfederer]

dream on..................

Another useless post from BR14. This isn't General; why derail an otherwise useful thread?

Mods...?

[BR14]

TLR.

dream on..................

[Ned Kelly]

My client (bank) *is* paying it -- they are increasing rates by 14.3% to cover employers NI and apprenticeship levy. We must choose agency PAYE or umbrella to stay working but this is a nice sweetener.

Thanks Brewdog that's excellent news . Is there any way you could mention which bank that is, it could be an obscure reference, I'm game for a challenge and I wont publish if I work it out

[Brewdog]

But the client companies should pay this money. They are the nearest entity to an Employer in this whole mess. They are forcing the Umbrellas to fake an Employer status to skate around Employment Law. It was the intention of the original law regarding the employee/employee split in the National Insurance Act , that those people who benefit from an employees work should share the burden of NI. This has not changed.

My client (bank) *is* paying it -- they are increasing rates by 14.3% to cover employers NI and apprenticeship levy. We must choose agency PAYE or umbrella to stay working but this is a nice sweetener.

[BlueSharp]

If client companies have to pay ERNIC, then you'll find your rate reduces commensurately. The only way to keep your income up is to negotiate a higher rate in the first place.

I mentioned this a while ago, inside ir35 is dead you are either a fixed-term worked who pays PAYE tax on the advertised rate or you are outside.

Some skill sets are still rare and will still command a higher rate.

[NotAllThere]

If client companies have to pay ERNIC, then you'll find your rate reduces commensurately. The only way to keep your income up is to negotiate a higher rate in the first place.

[Ned Kelly]

Like many contractors I'm coming to terms with the financial implication of the new IR35 regulations . Contracting in large Financial services organisation that has performed their blanket version of CEST, the only options for most people are Umbrella or out. And 'Out' is not a particularly nice place to be given the uncertain job market at the moment.

There is a political fight against IR35 and I applaud that, but given the hideous comments by Jesse Norman in parliament the other day and Javid trying to forget any promises he made prior to the election, I don't see much immediate hope in getting a repeal.

What I do see as a potential target is the injustice of the Employer NI tax (translated by Umbrellas into Employment Expense). I don't blame Umbrella or Agencies for passing this tax on, they probably couldn't survive if they had to pay it, but it is wrong that contractors, who have now lost their limited company director status, being treated as Employers.

The amount of this tax could easily be up £7K and £10K per year depending on your daily rate. This figure was never in the rate agreed with the client/agency and at the moment the clients don't intend to increase rates to pay for it.

But the client companies should pay this money. They are the nearest entity to an Employer in this whole mess. They are forcing the Umbrellas to fake an Employer status to skate around Employment Law. It was the intention of the original law regarding the employee/employee split in the National Insurance Act , that those people who benefit from an employees work should share the burden of NI. This has not changed.

The big Financial companies have made no protest about the IR35 changes. I suspect because they prefer the government to be looking at contractors tax affairs rather than their own, but this NI has to be changed.

I suspect there will be some interesting Employment Tribunal cases in the coming years, where contractors will demand the Employers NI back from their actual employer

If anyone knows if there is a specific campaign I would love to hear.