Under IR35 - Capita is charging me Apprenticeship Levy Tax Under IR35 - Capita is charging me Apprenticeship Levy Tax - Page 2
Page 2 of 4 FirstFirst 1234 LastLast
Posts 11 to 20 of 31
  1. #11

    Super poster

    ladymuck's Avatar
    Join Date
    Sep 2005
    Location
    London
    Posts
    3,450

    Default

    Quote Originally Posted by SueEllen View Post
    Why is this thread in General?
    I used to think General (as it is under the Contracting category) was for general contracting questions not covered by the other forums, and that the Social forums covered all the fun stuff. That said, this really should be under Accounting / Legal.

  2. #12

    My post count is Majestic

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    40,537

    Default

    The title and a quick scan of the posts should have cleared that up in seconds. They should rename General Bantz or something though.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  3. #13

    Old Greg is my bitch's bitch

    northernladyuk's Avatar
    Join Date
    Nov 2011
    Location
    Working the streets of your imagination
    Posts
    9,460

    Default

    Probably the easiest thing is to pay the 0.5%, give notice to terminate the contract and offer to start a new contract with an additional 0.5025% on the day rate.
    Where there's muck there's brass.

  4. #14

    Faqqed Off

    TheFaQQer's Avatar
    Join Date
    Oct 2006
    Posts
    36,488

    Default

    Quote Originally Posted by northernladyuk View Post
    Probably the easiest thing is to pay the 0.5%, give notice to terminate the contract and offer to start a new contract with an additional 3% on the day rate.
    FTFY - if they can try it on, why not the contractor?
    Best Forum Advisor 2014
    Work in the public sector? You can read my FAQ here
    Click here to get 15% off your first year's IPSE membership

  5. #15

    Old Greg is my bitch's bitch

    northernladyuk's Avatar
    Join Date
    Nov 2011
    Location
    Working the streets of your imagination
    Posts
    9,460

    Default

    Another option is to knock off 2 1/4 minutes early every day.
    Where there's muck there's brass.

  6. #16

    Nervous Newbie


    Join Date
    May 2017
    Posts
    5

    Default

    Quote Originally Posted by ladymuck View Post
    BTW - your post implies you are putting the invoicing/receipts through your Ltd Co. How are you accounting for the VAT discrepancy between what you charge and what you receive? I asked my accountant and he didn't know!
    Thanks, I wasn't aware of any discrepancy. I'll raise it with my accountant.

  7. #17

    Super poster

    ladymuck's Avatar
    Join Date
    Sep 2005
    Location
    London
    Posts
    3,450

    Default

    Quote Originally Posted by nelsonswork View Post
    Thanks, I wasn't aware of any discrepancy. I'll raise it with my accountant.
    Ignore me, see Eek's post which cleared it up:

    Quote Originally Posted by eek View Post
    There is no VAT discrepancy -> you bill £2000 with £400 VAT on top and you receive £400 in VAT.

    The issue is that you don't receive £2000 in payment alongside that £400 in VAT. You only get £1200 of it (rough guesstimate figure) with the rest withhold or paid on your behalf by the agency....

  8. #18

    Nervous Newbie


    Join Date
    May 2017
    Posts
    5

    Default

    Quote Originally Posted by eek View Post
    First question who is paying you personally... To answer your question we need to know the contract hierarchy:-

    public sector client -> Capita -> ???? -> ???? (either your company / umbrella) --> you
    Structure is: Public Sector Client -> Capita -> My LTD Company -> Me

  9. #19

    bored now

    eek's Avatar
    Join Date
    Jun 2010
    Location
    😂
    Posts
    22,780

    Default

    Quote Originally Posted by nelsonswork View Post
    Structure is: Public Sector Client -> Capita -> My LTD Company -> Me
    Capita are therefore deducting the appropriate payments as the levy is based on employers NI payments and Capita is responsible for paying the employers NI part of your IR35 payments. See https://www.gov.uk/guidance/pay-apprenticeship-levy for the rules on how the apprenticeship levy is paid

    As an employer, you’ll have to pay Apprenticeship Levy each month from 6 April 2017 if you:


    Your annual pay bill is all payments to employees that are subject to employer Class 1 secondary National Insurance contributions (NICs) such as wages, bonuses and commissions.
    And to avoid any avoidance lets show how an IR35 contract is now paid:-

    Employers NI deducted from the invoice and paid by the agency directly
    Employees NI paid on your behalf by the agency
    Income Tax paid on your behalf by the agency
    Last edited by eek; 18th May 2017 at 10:35.
    merely at clientco for the entertainment

  10. #20

    Respect my authoritah!

    NotAllThere's Avatar
    Join Date
    Aug 2007
    Location
    Far away from HMRC
    Posts
    21,026

    Default

    Quote Originally Posted by SueEllen View Post
    Why is this thread in General?
    Moved.
    Hmm. I'm beginning to suspect that you need to find all the packing the computer came in...

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •