Agency worker - paying 2 lots of national insurance is this right?

bella2121

Hi hope someone can help me

Basically my partner got a job through an agency and gets paid weekly. Every week he pays tax and NI which you would normally expect, but also pays the employers NI contributions and also a fee of £22.50 (because he earns over a certain amount)

Does this seem right? hes worked for agencies before and never had to pay these surely its the companies responsiblity to pay them?

If anyone has any thoughts or any idea were I could get further information it would be much appreciated

Notmyrealname

He must be getting paid through an umbrella company - many agencies use that so they avoid paying employers NI, holiday pay or coming under the new Agency Workers Right act HOWEVER THE AGENCY SHOULD HAVE MADE THAT CLEAR. So yes he will be paying both employers NI and employee NI. The £22.50 is the administration fee the umbrella company charges.

What he should be doing to take the most advantage of this is claiming for as many expenses as possible such as travel, phone for work, work clothes etc.

Here's more about umbrella companies.
http://en.wikipedia.org/wiki/Umbrella_company

bella2121

Thanks for that I believe it is an umbrella company that pays him, he hasnt claimed any expenses yet, we have got a form to claim stuff but have never bothered it all looks really complicated, I'm gonna attempt filling it in and get OH to sign it cause hes useless at forms

Thanks again

scheming_gypsy

The expenses will be easy enough; mileage and lunch.
Lunch is usually a set amount depending on the umbrella company, mine is £5 if i'm out of the house for up to 10 hours or £10 if out for over 10 hours.
mileage - claimable at 45p a mile if driving

the deduct them all from the gross wage (after their fee and employers NI) so you pay less tax, and take more money home.

bella2121

Thanks

do you have to provide a receipt for lunches? OH goes to a butty van and they dont really do receipts?

Think i'm gonna have to get the petrol receipts out the car and see if I can back date them he hasnt claimed anything and has worked for them for 12 weeks!

scheming_gypsy

With the petrol receipts you need VAT receipts but I think they ask for these for their own VAT purposes, so as long as they're within this tax year they don't bother too much if they're recent.

Lunches - no, you don't normally need to provide them but you're supposed to keep hold of them incase they're needed. but with my umbrella company i just click 'quick claim' and it fills everything in a £10 a day.