[Peter Owen]

#17946

Hi
I have a question where I’d aprreciate assistance from the forum.

I’m a contractor curently working outside of IR35. I have a contract between my limited company and the recruitment company who placed me at their client site. I invoice the recruitment company each month.
After April 6th, I will continue to work at the client site, but fall inside IR35. So inside IR35 I will not be working through my limited company.
The recruitment company recommended that I should now work through a payroll company. They sent me some illustrations highlighting my invoiced amount and what deductions would be made.

On the list of deductions it includes employee National Insurance and income tax – I expected this, no problem.
However the list of deductions also includes EMPLOYER National Insurance.
My thinking is that in this relationship I am the employee. I am certainly not the employer AND the employee.

So my question is in the above situation, which I imagine a number of contractors will find themselve in:
Who is my employer and therefore who is liable to pay EMPLOYER National Insurance?
The recruitment company, their client or a payroll company?

Thanks

[Andy Barnes]

#18581

Hi Peter,
It’s ridiculous isn’t it!

I would highlight this to your client and ask for the contract fees (day rate?) to be changed to cover it.
If they ‘don’t like it’ perhaps they can reassess the IR35 status.

Good luck,
AndyAt6prog

[Author]

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