You may be asked by your consultant whether you would like to work on a 'PAYE or Limited Company basis'. These are explained below:
Under PAYE you are entitled to all the usual statutory benefits associated with a permanent job. For example, 28 days paid holiday per year including 8 Bank Holidays, statutory sick pay and no need to worry about making payments to the 'taxman' for Income Tax and National Insurance. Click Here to see how Holiday Pay is calculated.
Your wages will be paid directly to your nominated bank account and you'll be sent a payslip showing your Tax & NI deducted. Your payslip will also show your holiday allowance.
If you have set up your own Limited Company, we are able to pay you your wages gross. That is, we do not deduct Income Tax or employees National Insurance. In addition, we are able to pay you at a higher rate.
This is because we do not have to pay separate holiday pay payments (usually between another 12-14.5%) or employers National Insurance (another 15% ), we are able to pass these amounts on to you directly. This will only apply if the contract falls 'Outside IR35' regulations. Polytec will only deal with Limited companies registered in England & Wales.
One other method of working on a 'Limited basis' is to use the services of an 'Umbrella Company'. These companies (often accountants) will look after your tax issues for you. Recent legislation means your tax liability may be passed on the us as an agency or even the end client you work for if HMRC have difficulty in recovering it. This method of working has therefore become less attract for agencies and we are currently unable to support it.
We run an in-house payroll every week, so any pay related questions you have, can be easily answered. In order to ensure that your pay reaches your account by Friday, we require your authorised timesheet by 8am on Tuesday following the week worked.
Timesheets may be posted, scanned & emailed or hand delivered to our offices. You may download a copy timesheet here