Apprentice Levy

unforeseen

I didn't pick it. My contract turned into one in April when the new rules kicked in.

The NHS trust I worked for had serious problems, over half their locums jacked it in because of it.

joeypesci

Thanks for all the replies. And yes, it is in the public sector. Unfortunately back at the NHS. I don't want to be in IR35 as people tell me it costs me more but I don't understand any of it and NASA told me the government deems all public sector workers within IR35.

joeypesci

PasturesNew wrote: »

Using an umbrella company is an easy way for contractors to be able to go to work and "forget" all the Ltd company stuff. Go to work, get the timesheet signed, client is billed, you get a payslip.

The umbrella provides you with a service - to receive payment and produce a payslip and all the right figures.

You are not an employee of the umbrella company. You are choosing/using them for the services they provide to contractors who do not wish to set up their own Ltd company/do accounts/do all the billing etc. The umbrella are not choosing you - you can't go to work tomorrow and be sent home/sacked only to find the umbrella company has sent another person to do that job.

You got the contract with the client. You chose the umbrella company to provide you/your self-employment company with payroll services and relevant paperwork.

But why do I have to pay the Apprentice Levy when I already pay NASA £15 a week for their payroll service. I only use NASA because the new agency I'm with stated it is who they use. I just needed the work so went with them. I have since found it, I could be wrong, that agency's shouldn't recommend Umbrella companies that charge a weekly fee. Yes they pretty much all do, but it should be up to the contractor themselves to go with who they wish but the agency pretty much pushed as all to use NASA.

joeypesci

motorguy wrote: »

This has been covered many times before on here and the answer is - they are right in what they are doing. Also, they will be charging you Employers NI too.

Heres why :-

1. You're being charged out to the client for £X a day. The client pays that for your services, end of.
2. You, however have either opted to be OR more likely the contract has been deemed inside IR35 and as such are working effectively as an "agency worker" and you are taking a PAYE wage into your current account.

As part of that they have to pay your overheads - EmployersNI, Apprenticeship levy and you then pay EmployeesNI and PAYE Tax out of that.

The issue is ultimately at one end you're charging a day rate for services and at the other end you're taking a PAYE wage. Thus out of your day rate you're paying the employers contributions too.

Now, people on here who dont understand it will postulate and huff and puff and tell you i'm wrong because they dont understand whats happening, however thats how it is - it is NOT a normal Employer / Employee relationship - at one end you're charging a day rate for a service, at the other end you're taking a PAYE wage.

I suspect your contract has been deemed inside IR35 (public sector at a guess?) OR you've opted to go through an umbrella company and take a PAYE salary.

Thanks. So I'm stuck paying for it? I'm now starting to feel with the IR35 and this Apprentice Levy (which granted is only just over £2 a week) its making public sector work pointless as I now think I maybe on less per hour than the permanent employees yet I have less rights (not hit the threshold to claim the same rights as full time employees)

motorguy

joeypesci wrote: »

Thanks for all the replies. And yes, it is in the public sector. Unfortunately back at the NHS. I don't want to be in IR35 as people tell me it costs me more but I don't understand any of it and NASA told me the government deems all public sector workers within IR35.

That is wholly untrue.

Sadly most bodies in the civil service are too spineless to actually make a decision, so they take the easy route and deem everyone in - which is against HMRC guidelines.

motorguy

joeypesci wrote: »

Thanks. So I'm stuck paying for it? I'm now starting to feel with the IR35 and this Apprentice Levy (which granted is only just over £2 a week) its making public sector work pointless as I now think I maybe on less per hour than the permanent employees yet I have less rights (not hit the threshold to claim the same rights as full time employees)

Yes, exactly. Its a sad state of affairs

motorguy

joeypesci wrote: »

But why do I have to pay the Apprentice Levy when I already pay NASA £15 a week for their payroll service. I only use NASA because the new agency I'm with stated it is who they use. I just needed the work so went with them. I have since found it, I could be wrong, that agency's shouldn't recommend Umbrella companies that charge a weekly fee. Yes they pretty much all do, but it should be up to the contractor themselves to go with who they wish but the agency pretty much pushed as all to use NASA.

They will all charge the levy. The £15 a week is merely a handling fee for them to process your payroll

joeypesci

I assume I can't get out of the IR35 trap while in the contract? I'd have to leave instead? And how would I go about questioning NASA who insist the government has deemed all public sector work as IR35?

EDIT-

Reading into it, if I'm right and my contract is in IR35 then I can't do anything about it but leave.

How do you actually know if you're in IR35 and what do you look for on your payslip to find out how much you're losing because of it? I'm on, what I thought was an OK amount per hour, but with IR35 maybe its actually a crappy per hour rate.

TANGOMAN64

An employee doesnt pay,a company or enterprise must pay it if they are earning over 3 million per year.

TANGOMAN64

PasturesNew wrote: »

Using an umbrella company is an easy way for contractors to be able to go to work and "forget" all the Ltd company stuff. Go to work, get the timesheet signed, client is billed, you get a payslip.

The umbrella provides you with a service - to receive payment and produce a payslip and all the right figures.
I received my employment contract from my employer who is also the umbrella company therefore I am there employee ,not contractor,employee whether I am temporary,part time,full time,and have employees rights.When I use an umbrella company I must only pay my tax,NI,and a fee for services(reluctantly)which must also be part of their duty,not my fault they don’t hire a wage clerk.The NIERS payment mustn,t be payed by an employee,it is there responsibility under the employers liability(compulsory insurance act 2008)ltd or self employed yes,but not for an employee.
You are not an employee of the umbrella company. You are choosing/using them for the services they provide to contractors who do not wish to set up their own Ltd company/do accounts/do all the billing etc. The umbrella are not choosing you - you can't go to work tomorrow and be sent home/sacked only to find the umbrella company has sent another person to do that job.

You got the contract with the client. You chose the umbrella company to provide you/your self-employment company with payroll services and relevant paperwork.

.I am an employee,not a contractor and am under the PAYE scheme,not ltd,I was given a contract of employment therefore I am an employee of theirs.I was also a victim of paying 2 Ni’s,one of course was a usual tax and NI,the other a NIERS which I am not liable for as an employee of theirs.