Just got hit with paying both of these NI taxes working through an Umbrella company. Is paying Employers NI going through an Umbrella company something that has been introduced within the last 3 years or so as I can't remember paying this last time I was a contractor. Seems like contracting is becoming less attractive than I remember.
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Employees and Employers NI
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You could argue working through an Umbrella is not contracting as you are employed by the brolly but lets leave that one
Speak to your Umbrella about any issues first as they are your employer and should manage it all for you. If they still can't answer your question to your satisfaction you could post a thread in the Umbrella section of the forum to see if Lisa can help.
EDIT : Does this help?
http://www.contractorumbrella.com/employers_nic.html
EDIT 2 : Or this?
http://www.sjdaccountancy.com/about/..._home_pay.html
National Insurance Savings
With an umbrella company you will pay both employees and employers NI (Employers NI is 13.8% of your salary, and employees NI 12% for the first £770 a week, and 1% thereafter (both after tax free personal allowances).Last edited by northernladuk; 28 October 2013, 18:31.'CUK forum personality of 2011 - Winner - Yes really!!!! -
All employers have to pay employers NI contributions. The main difference between a normal permie job and contracting through an umbrellas is that in a permie job, employers NI is something your employer pays on top of your salary (e.g. if you're salary is £20k, then only employees NI and income tax will be deducted) whereas an umbrella will deduct it from your rate when they pay you.Comment
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Originally posted by drittz View PostJust got hit with paying both of these NI taxes working through an Umbrella company. Is paying Employers NI going through an Umbrella company something that has been introduced within the last 3 years or so as I can't remember paying this last time I was a contractor. Seems like contracting is becoming less attractive than I remember.Comment
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Originally posted by drittz View PostJust got hit with paying both of these NI taxes working through an Umbrella company. Is paying Employers NI going through an Umbrella company something that has been introduced within the last 3 years or so as I can't remember paying this last time I was a contractor. Seems like contracting is becoming less attractive than I remember.Comment
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Originally posted by drittz View PostJust got hit with paying both of these NI taxes working through an Umbrella company. Is paying Employers NI going through an Umbrella company something that has been introduced within the last 3 years or so as I can't remember paying this last time I was a contractor. Seems like contracting is becoming less attractive than I remember.Comment
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Originally posted by Old Greg View PostNo change AFAIK. Time to go Ltd or are you absolutely sure you are inside IR35?
The amount saved in tax needs to make the extra admin worthwhile.
If you are contracting via Umbrella then end client should be paying at a rate that at least covers the Er's NI - IMO.Comment
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