HMRC Payment NIERS Query

sgsg

Hi All,

I currently have a job in which I work for the Local Council (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!!

Cook_County

It is the employer's NI contribution.

You are employed; not self-employed. It is the employer that pays the contribution - not you.

sgsg

So, just to clarify - I should not be paying the HMRC Payment NIERS so they were wrong to have deducted this from my salary?

Cook_County wrote: »

It is the employer's NI contribution.

You are employed; not self-employed. It is the employer that pays the contribution - not you.

sgsg

I presumed as I was working through an umbrella company I would be classed as self employed!?

This is all new to me... I have only ever had Permanent jobs in the past.

agrinnall

I think you need to educate yourself on how unbrella companies work. What they are doing is correct; out of the gross payment you receive for providing your services payment has to be made to the umbrella company for their services and to HMRC for income tax, employees NI and employers NI.

The only way you would get the full gross payment is if you have a contract direct with the council and can justify being regarded as self-employed, in which case you would need to make SE payments to HMRC. However, it's quite likely that the council would not allow this as the SE justification may not exist and they would then have to regard you as employed.