Contractor pays employers N.I.C

[srk]

Thinking of becoming a contractor, is it true that a contractor working for a umbrella company has to pay employers N.I from their own pay.
In this case is it that as a contractor whose 24 month period has exceeded and is termed as a permanent employee takes home less net pay then a normal permanent member of staff if the rate of pay is the same.




Thank you

[malvolio]

Thinking of becoming a contractor, is it true that a contractor working for a umbrella company has to pay employers N.I from their own pay.
In this case is it that as a contractor whose 24 month period has exceeded and is termed as a permanent employee takes home less net pay then a normal permanent member of staff if the rate of pay is the same.




Thank you

There is so much wrong with that question, I don't know where to start.

Read the guides we keep telling people to read and try again.

But briefly, "Yes" and "Don't be silly".

[srk]

Any links to the guides would be appreciated.

[Waldorf]

These may be a place to start?

Nixon Williams - Brochures & Guides

Nixon Williams - Take Home Pay Calculator

[malvolio]

Any links to the guides would be appreciated.

Go to www.pcg.org.uk and download the Guide to Freelancing. But there's one on the links on this page if you look really hard.

Rule 1 of contracting - think for yourself, don't rely on others to do it for you.

[srk]

Thanx Waldorf and malvoli

[LisaContractorUmbrella]

[QUOTE=srk;1386999]Thinking of becoming a contractor, is it true that a contractor working for a umbrella company has to pay employers N.I from their own pay.
In this case is it that as a contractor whose 24 month period has exceeded and is termed as a permanent employee takes home less net pay then a normal permanent member of staff if the rate of pay is the same.


An umbrella company has a business to business contract with the recruitment agency and, in that contract, a rate will be given. The umbrella company invoices for that rate and then receives payment for that invoice; from the money that they receive they must pay you, HMR&C (income tax, employee's NI and employer's NI) and retain an amount for themselves.

When a contract exceeds 24 months or from the point that you know a contract will exceed 24 months you will no longer be able to claim travel or accommodation expenses.

[srk]

Thank you Lisa