HMRC Payment NIERS query

sgsg

Hi All,

I currently have a job (contract / classed as self emloyed) which I found through an Agency in which I pay an Umbrella company to deal with my Tax and N.I etc.

However, Tax, N.I and ''' HMRC Payment NIERS ''' are being deducted from me each month, for example this is my December pay breakdown:-

I worked 151 hours at a rate of £13.46 an hour which = £2032.46.

Deductions:-
Tax = £226.60
N.I = £140.99
Umbrella company fee = £60.00
HMRC Payment NIERS = £163.52

Therefore:- 2032.46 - 226.60 - 140.99 - 60.00 - 163.52 = a take home figure of £1,441.35

What is the HMRC Payment NIERS?? - It feels like I am being tax'ed twice!!

catieeb06

A quick Google search mentions that it's the employers contribution to your NI but they're deducting it from your salary.

Check out https://www.listentotaxman.co.uk and you'll see that each month that you pay NI, your employer also contributes. Sorry, no employment expert, was curious myself.

Russe11

Thats terrible, looks like you not claiming any expenses so you are not getting anything at all out of your self employed status.

Where is the provision for paid holiday entitlement?

I'd of thought you would be far better off on PAYE.

You essentially giving £60 fo them to process your pay, what for, so thay can make more money out of you?

Can I ask why you chose to be paid this way, or was it the case it was forced upon you?

sgsg

In relation to PAYE - I didn't think I could do that through the company I work for as I am classed as self employed so can either go through an umbrella company or sort the tax/n.i out myself..

Surely there is something wrong there though... I shall call the umbrella company and also the tax office on Monday to seek further clarification.

sgsg

By this do you mean that I should not be paying the HMRC Payment NIERS anyway?

catieeb06 wrote: »

A quick Google search mentions that it's the employers contribution to your NI but they're deducting it from your salary.

Check out

---

and you'll see that each month that you pay NI, your employer also contributes. Sorry, no employment expert, was curious myself.

Russe11

Yeah you have to pay the NI, since the payroll is being processed for yourself its you have to pay the employersNI also.

If you can be paid gross, then you would save the £60 fee, the Employers NI and any expenses you incurr.

Why is your job job classed as selfemployed?

Let me guess, you can't choose your payroll company either?

sgsg

I found the job through an agency and they recommended that I use an umbrella company otherwise I will have to sort out my own tax and n.i affairs etc.. I presumed I would pay tax, n.i and the company margin and that was it!! But I am very annoyed about this HMRC NIERS payment... I'm been ripped off.. its like paying tax twice!!

sgsg

http://

allavailable.info/

thread-73209.html#.UOdJgm9rhd4


I just found this website - it says that I should not be liable for NIERS - its my employer that should... sorry it wouldnt let me put the link together as i am a new user.

catieeb06

That's what I thought like I know I pay NI contributions but I also know that my employer makes NI contributions in addition to mine on my behalf that don't impact on my net pay.

persa

I don't want to re-run the figures because well, I'm not a PAYE expert and it's late, but if you post on the Cutting Tax board, there are people there who will check it for you.

The general principle of 'you' paying Employer's National Insurance is correct - your little umbrella company is employing you, so it (ultimately you) has to suffer this cost.

Russe11

sgsg wrote: »

I found the job through an agency and they recommended that I use an umbrella company otherwise I will have to sort out my own tax and n.i affairs etc.. I presumed I would pay tax, n.i and the company margin and that was it!! But I am very annoyed about this HMRC NIERS payment... I'm been ripped off.. its like paying tax twice!!

essentially you are paying 220+ a month to save you having to save the tax and NI yourself and do a tax return... no wonder they suggested it.

Still not said what industry/type of work it is, some industrys have specific schemes and rules.