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.
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.
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