What I don't understand then is why do I have to use the "umbrella company" who deduct Employer's NI contributions. Why is it that the Recruitment Agency would not pay me instead, without using an umbrella company? I was told that I must use an umbrella company, but I don't understand why this. Surely if I pay employer's contributions for the umbrella company, then that means I am hiring them. But what if I don't want to hire an umbrella company altogether. Is there a law or a rule that one must use such a company that I don't know about? A random question: So what happens if a Recruitment Agency gives someone a temp admin job on a national minimum wage and then an umbrella company deducts employer's contributions. Then the person will end up technically working on an illegal wage? Also, according to my Google search it seems recruiters get around £100 for referring clients to these umbrella companies. There appears to be an obvious intensive for the recruiter to push clients to use these umbrella companies. Sounds very odd to me...

PS: there is also a "Conduct Regulations" "Opt-Out" form that's been sent. I'm not very clear what that form represents but I'm presuming by opting out I am getting rid of this umbrella company? Never experienced this before, but it all seems well dubious...

I definitely have to pay the employer's NI contribution - it's broken down in the "Estimated Net Income" document sent to me. However, it seems that I would be paying Employer's NI contribution for the "umbrella company" rather than the Recruitment Agency. ?? I got it broken down and the document entitled "Estimated Net Income" starts with "Company ([Name of Umbrella Company]) Gross Margin" and shows substantial deductions for "Employer's costs including employer's national insurance". Then, whatever is left in the Gross Payment section follows to the next section where my net payment is calculated after my tax and NI. It's looking like I am being offered "Assignment income reconciliation" services by this umbrella company, for which I have to pay employer's NI contributions. It seems by accepting a temp job via recruitment company I'm forced to become an employer for the umbrella company, if I'm getting this right? Any views?

Hi, A couple of days ago I received a call from a Recruitment Agency asking if I am interested in a temporary office job assisting a company (their client) with their back log. This would be a contract job for 5 days. I completed the interview process and agreed to the job starting soon. Today I received an email from Recruitment Agency's umbrella company with the breakdown of my salary. Income tax, my NI contributions, company margin net and employer's NI contributions are all being deducted from my salary. What I don't understand is why do I have to be liable for my Employer's NI contributions? Surely that's for the employer to pay? Can anyone please advice me why employer's NI contributions would be deducted from my salary and is this a normal practice?