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Paying employer's NI and pension contributions

Discussion in 'Supply teaching' started by creaganturic, Dec 2, 2018.

  1. creaganturic

    creaganturic New commenter

    I am with a Supply Company, but my pay is administered through ISS. I have been checking my payslips and a worrying trend is showing. I pay NI and pension, but then I am charged for the employer's NI and pension contributions as well. Surely this cannot be right. Is it even legal, and if so what loophole are they using to get away with it? I am thinking of ditching the umbrella company and get paid directly from the Supply Company. I am just wondering what others have done and if this double deduction will continue if paid directly from the Supply Company. I am on long term supply at one school covering for maternity leave.
  2. keyportfolio

    keyportfolio New commenter

    When you're employed by an umbrella company, the daily rate your agency agrees for your assignments includes employer's NI and pension contributions - so you need to make sure you're happy with the rate offered on that basis. If you were paid PAYE, the rate would not include these things, because your agency would pay them separately.

    For that reason, an umbrella rate would normally be higher than a PAYE rate ( and vice versa of course). I'd definitely recommend clarifying this with your agency if you're not sure that these deductions have been factored in. Your umbrella should be able to confirm what your gross salary is after all deductions if this isn't clear from your pay advice slip. As your employer, they can also explain (if they haven't already) how they support you in your career and what benefits you get from their service, to help you make up your mind about whether umbrella or PAYE is right for you.

    Full disclosure: I work for an umbrella company. It's not the company you've named in your OP though, so I can't be sure of their processes or procedures.

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