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Why am I paying Employers NI?

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    #51
    Originally posted by eek View Post
    The building industry has had its own version of IR35 for a decade. It’s called CEST and while it changed slightly in April it won’t have a significant impact

    a far bigger one is that demand for building work is through the roof so wages have increased 30-40%
    CEST? I thought it was CIS?

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      #52
      Originally posted by ladymuck View Post

      CEST? I thought it was CIS?
      my mistake it is CIS oops

      but the rest stands, the building trade has its own scheme and it’s not the typical IR35 one
      merely at clientco for the entertainment

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        #53
        Biggest issue, is which comes first CIS or IR35, some end clients are choosing "IR35" first, which then adds more complications to the agency who then sit within the new reverse charge VAT scheme, which the umbrella does not - causing choas!

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          #54
          Originally posted by lucyclarityumbrella View Post
          Biggest issue, is which comes first CIS or IR35, some end clients are choosing "IR35" first, which then adds more complications to the agency who then sit within the new reverse charge VAT scheme, which the umbrella does not - causing choas!
          I think this is defined in legislation. As I recall, the Off-Payroll Working Rules (ch 10) and IR35 (ch 8) take precedence over CIS. In other words, I'm surprised this is a "big issue".

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            #55
            Originally posted by jamesbrown View Post

            I think this is defined in legislation. As I recall, the Off-Payroll Working Rules (ch 10) and IR35 (ch 8) take precedence over CIS. In other words, I'm surprised this is a "big issue".
            Which was fine until this year when the reverse VAT scheme was introduced into the CIS legislation.

            As someone has pointed out over on LinkedIn - HMRC now a group of fiefdoms none of whom are talking to each other as they implement fixes to their problems using whatever tools are available to steal from in other departments.

            Hence the VAT fiefdom uses CIS to combat construction VAT fraud without realising that IR35 trumps / overrides it on the NI side of things.
            merely at clientco for the entertainment

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              #56
              Originally posted by Lost It View Post
              Well I have to admit going "Umbrella" was a shock to my take home pay but I have two quotes from two different companies now. One "quotes" for 36 hours at minimum rate (which is wierd because I'm on day rate) and the other quotes for 48 hours which make a difference in take home pay of almost £50 more for some reason which makes no sense to me as there are three different tax regimes in place anyway. The "minimum wage" tax rate of zero, the intermediate tax rate of 20% and in my case the higher rate of 40% too.

              But the net effect is that I "lose" about 40% off the top line. Now this is shocking... So I will be seeking a much higher base rate in future, and I think, honestly that the Building Industry is about to become very expensive...
              Not happened yet. But it's going to have to happen.

              Oops. Wrong quote...

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