employer taking employers NI from my pay

2

Comments

  • agrinnall
    agrinnall Posts: 23,344 Forumite
    First Post Combo Breaker
    sangie595 wrote: »
    Where does it say that this is an "expert" forum.

    I think the clue is in the website name: moneysavingexpert.com. Of course, it's completely meaningless, but you can see why people might come here expecting to find expertise for free, when really they need to pay for it (or as you suggest, access it from a source that they've already paid for).
  • sangie595
    sangie595 Posts: 6,092 Forumite
    agrinnall wrote: »
    I think the clue is in the website name: moneysavingexpert.com. Of course, it's completely meaningless, but you can see why people might come here expecting to find expertise for free, when really they need to pay for it (or as you suggest, access it from a source that they've already paid for).
    True. But at the top of the forums it says that anyone can post! Hence it is very clear that these may or may not be "experts" - as we know, there are more than a few trolls for example, and I assume we don't mean "expert at trolling". If the correct "expert" advice is to get professional advice, then that's what it is!
  • martinsurrey
    martinsurrey Posts: 3,368 Forumite
    Flugelhorn wrote: »
    d
    I don't think they can take employer's NI from you, they have to pay that - they can take employee's NI and if you overpay through the year you can get that back (happens with multiple jobs).

    I think you'll find that whats happened is this:

    Under the old contractor method OP got £300 per day, then all taxes were the OPS responsibility.

    They have switched to payroll and have offered a salary of £263 per day.

    this means it costs the trust £263 + 13.8% NI = £263+£37 = £300

    So they haven't "taken" the NI from the OP, they have offered them a lower day rate as an employee.

    Which is perfectly legal, the on boarding of this change however may have been done wrong, as the OP is now an employee and as such has a contract of employment and all of the rights that come with that.
  • takman
    takman Posts: 3,876 Forumite
    Combo Breaker First Post
    agrinnall wrote: »
    I think the clue is in the website name: moneysavingexpert.com. Of course, it's completely meaningless, but you can see why people might come here expecting to find expertise for free, when really they need to pay for it (or as you suggest, access it from a source that they've already paid for).

    It says "expert" not "experts", the "Money Saving Expert" (as he is the founder) is Martin Lewis.

    So i'm actually surprised that anyone would think this a forum full of experts offering free advice. TyreLever is the only person i have seen who has made this mistake.
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    First Post Combo Breaker
    takman wrote: »
    It says "expert" not "experts", the "Money Saving Expert" (as he is the founder) is Martin Lewis.

    So i'm actually surprised that anyone would think this a forum full of experts offering free advice. TyreLever is the only person i have seen who has made this mistake.

    Actually there was a post on the Credit Card board yesterday that made a similar mistake, but you're right it doesn't happen very often.
  • paddyrg
    paddyrg Posts: 13,543 Forumite
    I think you'll find that whats happened is this:

    Under the old contractor method OP got £300 per day, then all taxes were the OPS responsibility.

    They have switched to payroll and have offered a salary of £263 per day.

    this means it costs the trust £263 + 13.8% NI = £263+£37 = £300

    So they haven't "taken" the NI from the OP, they have offered them a lower day rate as an employee.

    Which is perfectly legal, the on boarding of this change however may have been done wrong, as the OP is now an employee and as such has a contract of employment and all of the rights that come with that.

    Indeed. I suspect the practice are actually saying "we want the cost to us of having a locum to be £300, whether we pay on invoice or payroll, so we'll do whatever rate adjustments we need to make so the total cost to us is still £300 after accounting for NI, tax, holiday".

    If it takes the fee before minimum wage, that's a problem, but it doesn't, so from hereon in its down to negotiation.
  • agrinnall wrote: »
    I think the clue is in the website name: moneysavingexpert.com. Of course, it's completely meaningless, but you can see why people might come here expecting to find expertise for free, when really they need to pay for it (or as you suggest, access it from a source that they've already paid for).

    That's the website name. This is the forum. One should expect any articles on the website to be written with a reasonable degree of expert knowledge. Posts on the forum are entirely different.
  • sangie595
    sangie595 Posts: 6,092 Forumite
    10,356,493





    Angels dancing on the pinhead...
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    First Post Combo Breaker
    That's the website name. This is the forum. One should expect any articles on the website to be written with a reasonable degree of expert knowledge. Posts on the forum are entirely different.

    I suggest you direct your explanation to the OP rather than me, they are the one who made the erroneous assumption, I'm just pointing out the likely reason why they made it.
  • motorguy
    motorguy Posts: 22,473 Forumite
    Name Dropper First Anniversary First Post
    edited 17 July 2017 at 3:39PM
    I think you'll find that whats happened is this:

    Under the old contractor method OP got £300 per day, then all taxes were the OPS responsibility.

    They have switched to payroll and have offered a salary of £263 per day.

    this means it costs the trust £263 + 13.8% NI = £263+£37 = £300

    So they haven't "taken" the NI from the OP, they have offered them a lower day rate as an employee.

    Which is perfectly legal, the on boarding of this change however may have been done wrong, as the OP is now an employee and as such has a contract of employment and all of the rights that come with that.

    +1

    Thats exactly it. I'm an IT Contractor operating within the Public Sector and they've applied the same ruling - that we're all inside IR35.

    As far as the Public Sector Organisation is concerned, they're still paying a day rate, so they expect all costs to come out of that, however as you're now an employee, someone has to pay the Employers NI and cover the holiday pay allowance. This "should" be the employer, but they're most likely just paying a day rate to an agency, who are paying the O/P so the extra cost is coming out of the day rate.

    The simple answer is - renegotiate to cover it. I got a 27% uplift to offset the Employers NI and the holiday pay entitlement, so i'm just left with the (still painful) PAYE taxation.
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