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Where Taxpayers and Advisers Meet

IR35 and EEErs NIC overhead

Posts: 1
Joined: Mon Jan 28, 2019 1:00 pm

IR35 and EEErs NIC overhead

Postby ClactonPat » Mon Jan 28, 2019 1:24 pm

As a contractor who works through Recruitment Agencies , I am concerned about the latest changes to IR35 which have forced me to employ a specialist Payroll provider since they came in.
in order to be paid via PAYE rules, because most large Agencies have now ceased providing payroll services I have been forced into the hands of an Umbrella Coy, since its no longer to my advantage
to use a one-man Ltd Co, given that all tax advantages through claiming travel expenses etc have been abolished by the current Govt.
What this means is that my daily rate has effectively been reduced by 13.8% by the imposition of EEERs NIC on me by the Payroll Provider.

What steps are being taken by Tax lobbying groups like this one, to force the Govt to reverse these oppressive tax arrangements on what they always insist are the 'self-employed entrepreneurs', a rather sick
joke given whats happened.??

The problem is that the ultimate employer, be it NHS, LOcal Govt or whatever, refuses to recognise the EERs NIC overhead and is happy to accept a reduced cost for hiring in
highly qualified professionals, so that the contractor takes the hit! All this talk of wages going up faster than RPI etc, is just waffle as far as I can tell. I have yet to come across anyone whose wages are going up!!!
In my case, I have suffered a 25% drop in net pay since 2013, largely down to IR35 rules which have also led to downward pressure on rates.

I told my MP that I will not be voting for him unless he agrees to lobby the Chancellor, but he refused!And he is a right-wing Tory!!!

I would welcome comments and any links to other lobbying groups on this issue and others.


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