HMRC Payment NIERS query

dori2o

The way I try and explain it to people when they phone HMRC to complain about it is like this.

When working for an umbrella company you are in effect employing yourself. You are an employee of your own company run via the umbrella scheme.

So, as an employee you are responsible for paying tax and NI on the earnings you receive which are above the NI'able and taxable limits.

As an employer you are responsible for paying Employers NI contributions on your employees earnings which are above the earnings limits.

As you are an employee of your own company (via the umbrella scheme) then the responsibility falls onto you.

It isn't always shown as Employers NI, often these companies will try to disguise the amount as a service fee etc.

Majestic12

My advice is to claim (legally) as much expenses as you can to make this contract worthwhile. I'm talking about travel, food and subsidence etc

Greyhoundd

Is it possible to claim these HMRC NIERS deductions back?

Ing123

My friend has the same problem. I am with a different company and I take home £60 a week more than him even though we earn the same. That's a lot of money to lose over the year.

Helendymion

My husband is in the same situation, charged 60 a week for paying his Employer NI .
How can it be avoided?

agrinnall

Helendymion wrote: »

My husband is in the same situation, charged 60 a week for paying his Employer NI .
How can it be avoided?

By getting a proper job where he is an employee rather that a disguised self employed person.

If he wants to carry on with the current arrangement then employers NI has to be paid by somebody and the only person it'll fall on is him.