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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 5999
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I am retired and working been paid through an umbrella

Customer Question

I am retired and working been paid through an umbrella company. Do I have to still pay employer national insurance
Submitted: 9 months ago.
Category: Tax
Expert:  bigduckontax replied 9 months ago.

Hello, I am one if the experts on Just Answer and pleased to be able to help you with your question.

Absolute balderdash and piffle, pension receipts are not subject to NI contributions. Furthermore employer NI is nothing to do with the individual. The umbrella is simply pocketing your money illegally. You will have to take it up with them in writing. If they persist take an action in your local Small Claims Court for recovery.

I do hope that I have been able to show you a way foreward in this matter.

Customer: replied 9 months ago.
They are saying that the agency rate of pay is higher than the paye for NHS staff to off set the fact that we have to pay our own employer NI and even if we are getting state pension we still have to pay this. So that is not so. We are not give a choice but to be paid through the an umbrella company
Expert:  bigduckontax replied 9 months ago.

Well if you are being paid as self employed they you will have to pay the equivalent of employer's NI, but that is a matter for you, not the umbrella company. The fact that you are being paid more than NHS staff is irrelevant. If you are below Statutory Retirement Age than you may still have to pay NI contributions even if simultaneously in receipt of an occupational pension.