IR35:
General - Question 11
Why do I have to pay both employers and employees NICs when a conventional employee does not have to?
Service companies are already liable to pay employer's NICs on salary paid to their employees. The IR35 legislation does not change that.
A service company and its worker/director are two separate legal entities with separate legal responsibilities. Where the worker is employed by the service company the employer responsibilities rest with the service company and not the client. This is why the service company's client does not have to pay employers National Insurance Contributions on the payment it makes for the worker's services and the service company does.
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