Advice on PAYE and contracting

bring1t

Hi, I am looking for some advice for my partner relating to an agency that she has just stoped working for, any advice would be appreciated. The details are as follows:

- She got a job for 14 p/h, for 6 month contract, agency assumed she was self employed.
- She is not self employed and wanted to use their PAYE, now told that she would only see 11.39 p/h. With the rest being taken up with accruing holiday pay (assumed 2.61).
- They said it would be easier to pay her back holiday pay at the end of the 6 month period.
- Contract has ended, she worked 667 hours, so was expecting 1741 back as holiday (14 - 11.39 = 2.61 * 667 = £1740), so was expecting 1740 back in cash.
- Have now been told that she will only be receiving 645 (before Tax).
- When questioned why this is such a difference we get told that they take the 14 subtract national insurance and then subtract the holiday pay (appears to be only about a pound per hour).

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QUERY, it appears that she now pays national insurance twice. Once on the pound per hour basis, and then second on her actual payslip. This adds to a difference of over a £1000?!?

IS THIS RIGHT?

WHA

The amount of NIC deducted from the £14 is the employERS nic and the amount taken off her payslip is the employEES nic so it sounds as though they are right - employERS nic is 12.8%.

bring1t

WHA wrote:

The amount of NIC deducted from the £14 is the employERS nic and the amount taken off her payslip is the employEES nic so it sounds as though they are right - employERS nic is 12.8%.

Thanks for the reply, but you mention that it appears that she has paid both employers and employes NIC. Why should she pay the employers NIC, surely this should be down to the agency that hired her?

bring1t

Anyone, should she be paying both employers and employees NIC?