Public Sector / Hays U Paystream Employers NI

[madhoose]

Hi,

I've looked through the forums but struggling to find a concrete source of information for my circumstances.

I have started a contract with a PS org through Hays and being paid via umbrella (paystream).

I agreed a day rate with Hays assuming (maybe my naivety) they would be paying employers NI. I've just been told that this is not the case and I need to pay almost £150 per week for this and Apprenticeship Levy.

Am i right in thinking that either my day rate should be uplifted, or that Hays/PS Client should be paying the Employers NI/Apprenticeship Levy? Or are they allowed to make me pay this?

If they should be paying it, what do I point them to that will help my case?

Thanks in advance folks.

[northernladuk]

We've had a couple of threads about this but I have one in mind that deals with it directly but I can't find it. Here is some reading for you though. First one is a bit a crap shoot but I think it's the same issue as you.

https://www.contractoruk.com/forums/...ship-levy.html

https://www.contractoruk.com/forums/...loyers-ni.html

I'll keep looking.

EDIT : Doh.. Here it is. It's a sticky at the top of the Umbrella forum.

https://www.contractoruk.com/forums/...loyers-ni.html

[madhoose]

Thank you for the reply, there is a section in that thread that says "The employer NIC should be paid direct to HMRC by the engager or their agent"

This is what I was led to believe, but I'm being told by the agent (Hay's) that this is not the case.

[northernladuk]

Thank you for the reply, there is a section in that thread that says "The employer NIC should be paid direct to HMRC by the engager or their agent"

This is what I was led to believe, but I'm being told by the agent (Hay's) that this is not the case.

Which thread sorry. The one I added on or did you reply before I added the extra link?

[Hobosapien]

It's pretty simple. The umbrella is the employer and will pay the employers NI, but it all comes out of the rate received from the client/agency.

So the rate you agree with the client/agency needs to cover all the relevant taxes including apprentice levy. There is no part of the chain above the umbrella that will pay anything other than the agreed rate as per their contract.

[psychocandy]

It's pretty simple. The umbrella is the employer and will pay the employers NI, but it all comes out of the rate received from the client/agency.

So the rate you agree with the client/agency needs to cover all the relevant taxes including apprentice levy. There is no part of the chain above the umbrella that will pay anything other than the agreed rate as per their contract.

As he/she said - Im with Hays too. Unfortunately, umbrella recieve rate from agency and pay employer NI out of this, rest as salary. Its crap of course.

BUT, didn't you check this in advance?

[northernladuk]

As he/she said - Im with Hays too. Unfortunately, umbrella recieve rate from agency and pay employer NI out of this, rest as salary. Its crap of course.

BUT, didn't you check this in advance?

But you got an uplift to cover it though didn't you.. so not that crap really is it?

[psychocandy]

But you got an uplift to cover it though didn't you.. so not that crap really is it?

I knew the deal upfront NLUK. No flies on me.

Others it appears dont.

[northernladuk]

I knew the deal upfront NLUK. No flies on me.

Others it appears dont.

I know you did but I'm putting in context for the OP who likely hasn't had the uplift so even crapper for him.

[ComplianceLady]

This is something the recruitment industry & umbrellas need to improve. Because of the way income is structured when paid through an umbrella it is virtually impossible to calculate the rate + employers NI so recruiters negotiate and advertise a gross rate, this is paid to the umbrella who pay you minus employer costs. The advertising of rates is generally done as 'limited' or 'paye' - the limited rate is all in, paye is after employer costs. The paye rate doesn't reflect what you're paid umbrella (due to the way the income is structured) and limited includes employer costs so for anyone new to umbrella it can be misleading. We do need a better way of doing this.

I know you did but I'm putting in context for the OP who likely hasn't had the uplift so even crapper for him.