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OrangeJuice
19th January 2019, 13:48
Hi

In a previous contract, I was within IR35 and agency taxed me at source.
I believe a agency has charged me employer tax but called it Apprentice Levy at 12% (this is shown on the remittance advice slips).
I've also had deductions of PAYE and Employee Nic's. The P45 total income shows Total Pay after the Employer Tax/Apprentice Levy has been deducted. It also only shows the Tax as PAYE, Employee NIC has not been included.

My concern is that I have paid Employers Tax/Apprentice Levy.

Is this normal?

Thanks

Anonimouse
19th January 2019, 19:22
Yes you will get stiffed for employees, employers ni and apprenticeship levy. I am sure when it was introduced it was never intented to be paid by individuals, but by companies

mudskipper
19th January 2019, 19:33
Hi

In a previous contract, I was within IR35 and agency taxed me at source.
I believe a agency has charged me employer tax but called it Apprentice Levy at 12% (this is shown on the remittance advice slips).
I've also had deductions of PAYE and Employee Nic's. The P45 total income shows Total Pay after the Employer Tax/Apprentice Levy has been deducted. It also only shows the Tax as PAYE, Employee NIC has not been included.

My concern is that I have paid Employers Tax/Apprentice Levy.

Is this normal?

Thanks

Is this a public sector contract? If so, then the employment taxes (ErNI and Apprentice Levy) should not be deducted from your rate.

However, this could be largely dependent on whether it was clear to you when you took the contract that these deductions would be made. If it was not, then it may be worth going down the employment tribunal route for illegal deduction from wages

See New IR35 case raises serious questions about CEST, off-payroll roll-out | IPSE (https://www.ipse.co.uk/our/news-listing/new-ir35-case-raises-serious-questions.html)

In this case he was found to be 'self employed' but that is a route open to you.

If you're an IPSE member, contact them for advice. If not (or as well) contact ACAS for advice on going to an ET (assuming you're within the timeframe - 3 months from the end of the contract)