Employers NIC Uplift?

[Light_Box]

Originally Posted by lurch

I've seen a very mixed bag over the years, for a very long time £1 more seemed to be the norm regardless of the initial rate (making this less than 12.8% in the vast majority of cases), but I've seen an uplift of greater than 12.8% in more than one case (the max being around 16-17%) when the company in question has considered the payroll saving as well. I won't deny that was a rare thing though.

Current uplift seems to be around 10%, but hopefully we'll see that improve as the supply of jobs increases.

Thank you lurch - this is very helpful. May I ask, why do you think the Limited Company rate should be more than 110% of the equivalent PAYE rate? From what I can see, the only saving made by us is not paying the employer's national insurance. Are you suggesting that there are other savings?

Many thanks
LB

[lurch]

Yes there are other savings but they are that of time and administration, you don't have to worry about calculating tax, statutory payments, holiday pay, insurance, things like that. Limited should take care of all that for you, streamlining what you have to do.

It may seem relatively minor but it all mounts up, the problem is that it's difficult to calculate exactly how much each item is worth. From what I've seen only the companies paying a lot of the higher end contractors take the time to work it out.

[The SMG]

Originally Posted by lurch

Yes there are other savings but they are that of time and administration, you don't have to worry about calculating tax, statutory payments, holiday pay, insurance, things like that. Limited should take care of all that for you, streamlining what you have to do.

It may seem relatively minor but it all mounts up, the problem is that it's difficult to calculate exactly how much each item is worth. From what I've seen only the companies paying a lot of the higher end contractors take the time to work it out.

It's still a finger in the air exercise though lurch.

PAYE = no saving
LTD = employer's national insurance, payroll manager, holiday pay saving

The higher end agencies may well take the time to figure out the total saving, whether they then choose to pass this saving back to the contractor is another matter entirely.

G

[lurch]

Originally Posted by The SMG

It's still a finger in the air exercise though lurch.

PAYE = no saving
LTD = employer's national insurance, payroll manager, holiday pay saving

The higher end agencies may well take the time to figure out the total saving, whether they then choose to pass this saving back to the contractor is another matter entirely.

G

Oh I don't disagree, I am just saying that there is a possible saving there. I have seen it passed on from time to time, but it's by no means the norm.

[curleyted]

Don't forget you don't have to bother with the time of some random calling up to query their net pay or holiday entitlement.

Agencies want to deal with recruitment, not confused workers.

[JeffreyC]

curleyted has pretty much knocked the nail on the head.

My esteemed compatriot lurch might not agree with me, but some contractors are on the phone every week to query something. It's a lot of work.

[lurch]

Originally Posted by JeffreyC

curleyted has pretty much knocked the nail on the head.

My esteemed compatriot lurch might not agree with me, but some contractors are on the phone every week to query something. It's a lot of work.

Oh I do agree with JeffreyC and curleyted, it's just that so many contractors call their agents before they call us out of habit, I didn't necessarily feel that was a fair thing to include.

It is a legitimate saving though, we still get people calling in each week for their pay totals even if we send it to them via other methods.

[Pistachio]

Do you tell them to bugger off?

[lurch]

Nope biting my tongue is part of the service.

[Pistachio]

There's your problem.

Some people just plainly need to be told they're a pain in the ***