Payroll Compare

Contractors can operate under a variety of payment structures. Which one is most appropriate depends on the length and nature of your contract, as well as your preferred level of management and will affect your tax liability. Umbrella Company - Contractors may use the services of an Umbrella Company when they either don't want to run their own busi... ness or they are planning on only contracting in the short-term. Working under a PAYE Umbrella offers protection to contractors, as the umbrella company becomes the Employer of Record, entirely removing the risk of being caught under IR35. Workers are a PAYE employee of the umbrella company and are paid minus all applicable tax and NI deductions. The payments from client or agencies are made gross to the umbrella company. As well as receiving administrative support, you would be entitled to the employee benefits such as holiday and sick pay, pension contributions and all statutory rights. PAYE - Some agencies offer a PAYE temporary payroll for workers who choose not to use an umbrella company. This basic service offers no additional benefits, other than statutory obligations. The agency effectively manages all taxes before paying the worker. CIS (Self Employed) - We provide a CIS service for all self-employed contractors in the construction industry. Limited Company - A Limited Company is currently the most tax-efficient option for contractors on long-term contracts, as business tax, rather than personal tax, applies, although this may change with the forthcoming budget. There will be an increased amount of administration, relative to other payment structures and all responsibilities for taxes and other deductions are the worker's responsibility. Workers also have additional risks and liabilities if their company accounts are not managed correctly. Payments made by clients or agencies are made gross. With fast and easy set-up we can have your contractors being paid in no time. We also take care of compliance and make sure that your contractors are 100% compliant, ...Read More