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    • doctor40
    • By doctor40 12th Jul 17, 10:14 PM
    • 40Posts
    • 3Thanks
    employer taking employers NI from my pay
    • #1
    • 12th Jul 17, 10:14 PM
    employer taking employers NI from my pay 12th Jul 17 at 10:14 PM
    hi, I wonder if anyone can help? I am self employed and work as a GP locum. One of the NHS areas in which I work has decided to make all of their locums "employed" to avoid issues with the taxman. When I take up a locum job, I agree a fee with the practice in question. I then am paid gross, and pay tax etc via self assessment.

    With the switch the employee status, I am now paid via PAYE. However the employer has deducted tax and both employers and employees NI. Their explanation....that I am paid a contracted rate and they need to make all of the necessary deductions from this, and I get whats left. So they have taken off 300 to pay employers NI.

    We were told about this change by a practice manager in March. I never received any official letter re this, although the practice manager got one, and has now passed it to me. I therefore didn't agree to the changes, or the deduction, and certainly didn't sign anything. The letter says "we need to deduct employment tax and NI" not specifying which.

    I also did the work at the end of March and the payment was made in May, so the work was done under the old rules and the payment made under the new rules, but again it did say in the letter I didn't see until today, that all payments made after April would be made under the new system "regardless of when the work was done". Can they do this? Again bearing in mind I didn't agree to this.

    SOrry it's confusing!

Page 2
    • motorguy
    • By motorguy 16th Jul 17, 9:00 PM
    • 16,610 Posts
    • 9,798 Thanks
    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.
    Originally posted by martinsurrey

    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.
    Last edited by motorguy; 17-07-2017 at 3:39 PM.
    "We have normality. I repeat, we have normality. Anything you still can't cope with is therefore your own problem."
    • TyreLever
    • By TyreLever 22nd Jul 17, 6:13 AM
    • 197 Posts
    • 90 Thanks
    Where does it say that this is an "expert" forum.. And whatever an "expert" is, there are so many variations and degrees of information that nobody could get it right every time - or even know about absolutely everything.
    Originally posted by sangie595
    It says, or at least strongly implies that this is an "expert" forum in the URL and on the home page. Its very name is "moneysavingexpert" ffs. It's not hard to miss the connection.

    I would define an expert as somebody know knows a lot about something or is very good at something. Don't think we need to go all Pluto on this.
    Last edited by TyreLever; 22-07-2017 at 6:24 AM.
    • TyreLever
    • By TyreLever 22nd Jul 17, 6:22 AM
    • 197 Posts
    • 90 Thanks
    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.
    Originally posted by takman
    Partial mistake actually. Being a public forum means anyone can post stuff, including me who is definitely not an expert. I did think that this forum has users who are experienced in the various aspects of finance who occasionally post advice.
    • t0rt0ise
    • By t0rt0ise 22nd Jul 17, 11:51 AM
    • 3,001 Posts
    • 1,871 Thanks
    It doesn't say legal expert, it says money saving expert. Experts at saving money aren't necessarily expert at anything else.
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