Job adverts with fake salaries

DoctorStrange

I'm seeing a lot more adverts these days with "gross salaries" e.g.  £114,300 but when pressed the agency admits its £100k but the Employers NIC and Apprenticeship Levy has been added on top.

I didn't think this was allowed but am I missing something? Have the new off-payroll rules permitted this sort of false advertising?

I just find it odd as job adverts have always been salaries in my experience 

tacpot12

The thing is that these are not jobs and they don’t pay a salary. They are a contract for services with specific deductions that have to be made before the contracted payments can be made. I don’t see it as any different to when I applied for contracts at £400/hr and had to pay Employers NI when I took a salary from my company. 

DoctorStrange

Im not talking about contracts for services  (I.e. "outside IR35").

I'm asking about "jobs" ("contracts of service" instead of "contracts for services") where the employer has already determined the monies paid should be classified as "employment income" which is subject to PAYE. As such, the employer has to pay the ENIC, not the employee as per SSCBA 1992 and the new Chapter 10 of ITEPA (I.e. Chapter 8 doesn't apply post April)

TELLIT01

Seems like a lot of fuss about nothing.  It's normal for job adverts to show salary 'circa'.....  this is really not very different to that.

unforeseen

DoctorStrange said:

Im not talking about contracts for services  (I.e. "outside IR35").

I'm asking about "jobs" ("contracts of service" instead of "contracts for services") where the employer has already determined the monies paid should be classified as "employment income" which is subject to PAYE. As such, the employer has to pay the ENIC, not the employee as per SSCBA 1992 and the new Chapter 10 of ITEPA (I.e. Chapter 8 doesn't apply post April)

TBH it looks as though the agency are acting as an umbrella company in this case hence the deduction of employers NIC and apprentice levy

prowla

A salary including employer's NIC is not a salary.

DoctorStrange

It seems to me the agencies are trying to use the new rules to lure people into jobs by telling them it pays more than it does.

Even if acting as an umbrella (who is actually your employer) they can't legally deduct Employers NIC from salaries.

I think this might get messy when more people realise what's going on...

Marcon

DoctorStrange said:

I'm seeing a lot more adverts these days with "gross salaries" e.g.  £114,300 but when pressed the agency admits its £100k but the Employers NIC and Apprenticeship Levy has been added on top.

I didn't think this was allowed but am I missing something? Have the new off-payroll rules permitted this sort of false advertising?

I just find it odd as job adverts have always been salaries in my experience 

Could you give links to a couple of examples, please?

Sandtree

Sounds like inside IR35 contract roles and therefore you're required to go via an umbrella, potentially a short list of umbrellas, and the actual salary is reduced to reflect costs. 

Oddly have had two agencies approach recently quoting inside IR35 day rates of circa £800 and after discussion its been "or £890 if you take holiday in advance". This seems an odd change of tact, it'd always been the norm to give the highest number possible and leave the discussion on umbrellas and so pensions, holidays etc until after the person says thats the route they want.