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Paying employers National Insurance!!!!

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Until April I was a self employed carpenter but because I get my work through an agency I now have to be employed.

I receive no holiday pay cannot claim any expenses I pay my own National Insurance payments and the employers contribution.

My accountant tells me unless there is a test case this is a loophole and nothing I can do.

The advert on T.V. to give employers up to £2000 towards employing someone makes my blood boil.

MARTIN LEWIS please help us take on the big boys I have written to my M.P. but he has not got back to me.
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Comments

  • I thought agency staff got paid holiday? You sure its not included in the wage (not rolled up though)
    Don't trust a forum for advice. Get proper paid advice. Any advice given should always be checked
  • tomtontom
    tomtontom Posts: 7,929 Forumite
    Are you sure you are not employed by an umbrella company?
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    10,000 Posts Combo Breaker
    You're either working for a cowboy agency or you haven't properly understood what it is that the agency are doing, as the things that you've written make little sense. Even if, as tomtontom suggests, it's an umbrella company, you would still be able to claim expenses.
  • I probably have not explained myself properly.
    Week 52 I was self employed and could claim my own expenses at the end of the year.
    Week 1 of this year the amount I am paid at the end is the same but the wage is half my hourly rate and made up of the expenses I normally claim back, but my biggest gripe is having to pay both my own and the employers contribution to National Insurance.

    As an employed person you do not normally pay your wages department £18 each week to do your wage, but because my work is through an agency I have to. They will not keep me on self employed.
  • AbbieCadabra
    AbbieCadabra Posts: 1,710 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    edited 1 May 2014 at 12:35PM
    i know there were some new rules for Agency staff coming in this year (article here), you'd no longer be able to be self-employed & Agency running costs were going to increase, but i don't see how you can be expected to pay Employers NI Contribution? this is what you've definitely been told/is detailed on your wage slip?

    gov.uk agency worker rights
  • Yes on my wage slip I pay employee and employers N.I. when I questioned it I was told its legal even the N.I. office are not happy but say it is a legal loophole.

    Which is why the T.V. advert makes me so angry they are helping employers and I am paying the agency!!
  • Two4Tuesday
    Two4Tuesday Posts: 639 Forumite
    I think the only thing you can do is put your rates up to cover the extra employer's NI and rolled up holiday pay. At the end of the day they have to be paid from somewhere.
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    10,000 Posts Combo Breaker
    Two4Tuesday is right, providing service through an umbrella company or a limited company should really be accompanied by an increased rate in order to (at least) offset the extra costs incurred. The problem for you is that it wasn't a choice, you've been forced to do it, so now you need to decide whether you would be better off working elsewhere.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    I think that AFTER the agency fees and the employer NI they still need to pay min wage so the rate has to be high enough to cover that and the holiday pay for the wage paid(and employer NI on that)

    min wage with holiday pay would be 1.1207 * min wage

    to make that up with employer NI need to take account of the earning limits then add the extra.

    One thing to watch with rolled up holiday pay is your tend to pay more NI on the pay than if you took the pay at the time you take the holiday
  • Even the holiday pay is added into the end wage they will not accrue it.
    But my wage self employed is the same as employed they have added all expenses/costs in and out to get the final amount the same.
    I just have no taxable expenses to claim at the end of the year as I would self employed.
    Building trade in Norfolk is very slow it is difficult to find other work.
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