"on-cost deductions"
Discussion
Hi,
I am a teacher working for a multi-academy trust and have undertaken two additional roles this academic year. One as a mentor to a trainee, the other as an examiner - both are for the trust's 'training group'.
The mentor job pays £50 per week. The examiner job pays £25 per script marked and £50 per meeting attended.
I noticed in my payslip there was slightly less than expecting so I started to enquire with finance/HR. During this I have managed to find the missing money and that'll be resolved, but it has uncovered an additional deduction that I don't fully understand and I'm wondering if anyone here can explain it?
For the mentor role, the first term the 'training group' paid my school £720, but then after 'on-cost deductions' I received £620 in my payslip, which then is subjected to NI, Tax, pension and student loan repayments. A 13.9% deduction.
For the examiner role, the £175 paid by the 'training group' to my school was £175, but then after 'on-cost deductions' I received £145 in my payslip, again subjected to the normal deductions. A 17.1% deduction.
I asked what the 'on-cost deduction' was and I was told that it is "... a deduction to include national insurance and tax payments. They are non-pensionable. It is a percentage per money allocated".
To me it looks like I am paying tax and NI on these additional amounts twice, is this correct? I have since of course further enquired but yet to have a reply and this forum has been very helpful in the past.
Apologies for the long post but figured it may help to include all the detail now to save being asked additional questions etc.
Thank you in advance.
I am a teacher working for a multi-academy trust and have undertaken two additional roles this academic year. One as a mentor to a trainee, the other as an examiner - both are for the trust's 'training group'.
The mentor job pays £50 per week. The examiner job pays £25 per script marked and £50 per meeting attended.
I noticed in my payslip there was slightly less than expecting so I started to enquire with finance/HR. During this I have managed to find the missing money and that'll be resolved, but it has uncovered an additional deduction that I don't fully understand and I'm wondering if anyone here can explain it?
For the mentor role, the first term the 'training group' paid my school £720, but then after 'on-cost deductions' I received £620 in my payslip, which then is subjected to NI, Tax, pension and student loan repayments. A 13.9% deduction.
For the examiner role, the £175 paid by the 'training group' to my school was £175, but then after 'on-cost deductions' I received £145 in my payslip, again subjected to the normal deductions. A 17.1% deduction.
I asked what the 'on-cost deduction' was and I was told that it is "... a deduction to include national insurance and tax payments. They are non-pensionable. It is a percentage per money allocated".
To me it looks like I am paying tax and NI on these additional amounts twice, is this correct? I have since of course further enquired but yet to have a reply and this forum has been very helpful in the past.
Apologies for the long post but figured it may help to include all the detail now to save being asked additional questions etc.
Thank you in advance.
Would your employer (the trust) have to pay employers National Insurance on the sums they pay you for this work. If so it would make sense that they take this from the fees they received for the training, otherwise bringing in work from outside would effectively cost them money. Employers NI is 13.8% I think
SpeedMattersNot said:
Hi,
I am a teacher working for a multi-academy trust and have undertaken two additional roles this academic year. One as a mentor to a trainee, the other as an examiner - both are for the trust's 'training group'.
The mentor job pays £50 per week. The examiner job pays £25 per script marked and £50 per meeting attended.
I noticed in my payslip there was slightly less than expecting so I started to enquire with finance/HR. During this I have managed to find the missing money and that'll be resolved, but it has uncovered an additional deduction that I don't fully understand and I'm wondering if anyone here can explain it?
For the mentor role, the first term the 'training group' paid my school £720, but then after 'on-cost deductions' I received £620 in my payslip, which then is subjected to NI, Tax, pension and student loan repayments. A 13.9% deduction.
For the examiner role, the £175 paid by the 'training group' to my school was £175, but then after 'on-cost deductions' I received £145 in my payslip, again subjected to the normal deductions. A 17.1% deduction.
I asked what the 'on-cost deduction' was and I was told that it is "... a deduction to include national insurance and tax payments. They are non-pensionable. It is a percentage per money allocated".
To me it looks like I am paying tax and NI on these additional amounts twice, is this correct? I have since of course further enquired but yet to have a reply and this forum has been very helpful in the past.
Apologies for the long post but figured it may help to include all the detail now to save being asked additional questions etc.
Thank you in advance.
Your school is pimping you out at £175.I am a teacher working for a multi-academy trust and have undertaken two additional roles this academic year. One as a mentor to a trainee, the other as an examiner - both are for the trust's 'training group'.
The mentor job pays £50 per week. The examiner job pays £25 per script marked and £50 per meeting attended.
I noticed in my payslip there was slightly less than expecting so I started to enquire with finance/HR. During this I have managed to find the missing money and that'll be resolved, but it has uncovered an additional deduction that I don't fully understand and I'm wondering if anyone here can explain it?
For the mentor role, the first term the 'training group' paid my school £720, but then after 'on-cost deductions' I received £620 in my payslip, which then is subjected to NI, Tax, pension and student loan repayments. A 13.9% deduction.
For the examiner role, the £175 paid by the 'training group' to my school was £175, but then after 'on-cost deductions' I received £145 in my payslip, again subjected to the normal deductions. A 17.1% deduction.
I asked what the 'on-cost deduction' was and I was told that it is "... a deduction to include national insurance and tax payments. They are non-pensionable. It is a percentage per money allocated".
To me it looks like I am paying tax and NI on these additional amounts twice, is this correct? I have since of course further enquired but yet to have a reply and this forum has been very helpful in the past.
Apologies for the long post but figured it may help to include all the detail now to save being asked additional questions etc.
Thank you in advance.
They pay you £145 of that.
The rest is their 'on-costs' which include admin, insurance, maybe use of their premises, employer's NI, apprenticeship levies, training costs, maybe pension costs and profit to the trust.
As a junior engineer years ago, I was paid about £10 an hour and charged out to the MoD at over £50.
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