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Employers NICs Increase - what does it mean to umbrella contractor's rates?

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    Employers NICs Increase - what does it mean to umbrella contractor's rates?

    As a heads up for those that want to know, not for those who want to moan about the NICs coming from the assignment rate.... On 6th April, not only have the new government implemented a rate increase taking the ERs NICs from 13.8% of taxable salary, raising it to 15%, but they have also lowered the threshold at which this kicks in. A double whammy for contractors.

    For those able to negotiate an increase in rate, you will need to be looking at approximately a 1.7% assignment rate increase to cover this and net you a similar take home from Pre April.

    Just thought this might help as few out there, especially if you have any extensions coming up.

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