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Employers NI and umbrella companys
Eathy
Posts: 1 Newbie
in Cutting tax
Why do I need to pay the employers and employees NI if I join an umbrella company due to being determined inside IR 35?
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Comments
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Strictly speaking, you don't pay both.
What's actually happening just now is the agencies are falsely advertising higher salaries (to try to equate to old IR35 rules) but in reality it's actually a lower rate than before.
Under the new Chapter 10 rules, ENIC has to be paid on top of your rate and can't be deducted from it, but at the end of the day £114 less ENIC less IT/NIC is exactly the same as £100 less IT/NIC.
In short, if you're signing up to a new contract you've no choice but to accept the lower rate.
If you're already in contact, you're got a stronger argument.
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