I am a contractor and my umbrella company charge me employers national insurance as well as nation insurance?

is this right?
I am a contractor and my umbrella company charge me employers national insurance as well as nation insurance?
Yes it is. The only way to get away from Employer's NI is to set up on your own and make sure your contracts are written in a way that keeps you outside of IR35 (Ie: include some clause about your company replacing you as an individual). Some umbrella companies promise to give you XX% of your money back. These usually involve a form of off-shore banking (in Luxembourg for example) and you end up having to take your money out using an ATM in this country! Steer clear as I can't believe the inland revenue will allow this to go on for muchlonger and you might get stung for back-taxes.


Setting up on your own is not as scary as it sounds. If you get a good accountant they can write off lots of money as expenses and you end up paying a lot less tax. An accountant will charge in the order of 拢1000 a year. It's definitely worth it!
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