Contract types

Payroll. Contract types

We can accommodate you to suit your individual needs, as we offer the option to work on a PAYE, Ltd company or Umbrella company basis.

It is important to note that we are not acting as an umbrella company. With this in mind, it is up to you to source your own Limited or umbrella company or to make the decision to be paid by us on a PAYE basis.

The PAYE contract

The Pay As You Earn (PAYE) system is a method of paying income tax and national insurance contributions. Our payroll department will deduct tax and national insurance contributions before paying you your wages.

Wages includes sick pay, maternity or paternity pay and adoption pay. You pay tax over the whole year, each time you are paid, rather than paying tax in one lump sum. We are responsible for sending the tax on to HM Revenue and Customs (HMRC).

At the end of the tax year, you will get a form P60 which sets out the total amounts paid to you and deducted from you for the previous tax year. A tax year runs from 6th April one year to 5th April the following year.

If you pay tax on your wages under PAYE, the PAYE system can also be used to collect the income tax on any other taxable income you have. The PAYE system can also be used to collect tax due on other sources of income.

HMRC uses a tax code to tell us how much tax to deduct from your wages. If HMRC does not have enough information to issue a full tax code, we will be told to use an emergency tax code until more information is received and the tax code can be adjusted.

Holiday pay under the working time regulations 1998. You are entitled to 28 days paid leave per annum, this includes bank holidays.

This entitlement accrues after you have worked for 13 continuous weeks with Anglo, full details are written in your Terms of Engagement.

48 Hour Working Week under the Working Time Regulations 1998.

Download a PAYE contract template.

What we need from you:

To ensure you’re set up correctly on our system, we just need a few documents from you. Please email payroll@anglo.com with copies of the following as soon as possible:

  • Please send us a copy of your P45. If you don’t have this, please complete a Starter Checklist (previously a P46) which can be downloaded from the HMRC website.
  • Should your contract expire and you obtain work from another source, we will issue you with a P45.
  • Bank account details (account name, account number, sort code and branch address).
  • Your maximum working week is 48 hours averaged over a period of 17 weeks. Should you wish to be able to work longer hours, please sign the 48 hour opt-out agreement, and return to Anglo.

Limited contract

If you haven’t already done so, you will need to form a limited company and open a business bank account (with the help from your accountant). The director controls invoicing, the company bank account and decides on how much to pay themselves, which is made up of a combination of salary and dividends.

The limited company’s contract will be with us and you will be able to claim as tax free expenses: travel and subsistence, hardware and software, training, professional subscriptions, business telephone, accountancy fees plus any other business costs.

You should be able to take home around 75% – 80% of your contract by working through your own limited company.

Anglo Technical Recruitment processes your payroll however we are not set up to help you start your own limited company. It is up to you to source your own limited or umbrella company.

This said, we have been working with umbrella companies and advisers that we know well and are happy to recommend to you:

Download a limited contract template.

What we need from you:

To ensure you’re set up correctly on our system, we just need a few documents from you. Please email payroll@anglo.com with copies of the following as soon as possible:

  • Certificate of Incorporation from your limited company, or a Certificate of Incorporation from your umbrella company. You will need to send us a copy of the Certificate of Incorporation before any payments can be released. The Ltd Co. must be a registered and Trading Company.
  • Should your Ltd Co. be VAT registered, we require a copy of the VAT registration document and each invoice you submit with VAT must show your VAT registration number.
  • For details of the current VAT registration threshold please visit www.hmrc.gov.uk; to register for the Flat Rate Scheme please visit www.hmrc.gov.uk or consult your accountant.
  • Bank details for your limited company or umbrella company (account name, account number, sort code and UK branch address).

Umbrella Contract

You essentially become an employee of the umbrella company. You submit timesheets to the umbrella who will in turn, invoice us for the work done by you. You will then be paid as a PAYE employee less the umbrella fee.

You will usually be allowed to claim some basic expenses, however be cautious of umbrella companies advertising ‘special’ dispensations or expense policies ‘approved by’ the Inland Revenue, that claim to allow expense claims without the need to produce receipts. The Inland Revenue are now challenging any company considered to be encouraging tax avoidance through fraudulent expense claims.

You will typically take home around 60% – 65% of your contract by working through an umbrella company.

Anglo Technical Recruitment processes your payroll however we do not act as an umbrella company. It is up to you to source your own limited or umbrella company.

We have been working with umbrella companies and advisers that we know well and are happy to recommend to you:

Umbrella providers for UK contractors

Umbrella providers for international contractors

Download an umbrella contract template.

What we need from you:

To ensure you’re set up correctly on our system, we just need a few documents from you. Please email payroll@anglo.com with copies of the following as soon as possible:

  • A Certificate of Incorporation from your umbrella company. You will need to send us a copy of the Certificate of Incorporation before any payments can be released.
  • VAT Registration Certificate of your umbrella company.
  • Bank details for your umbrella company (account name, account number, sort code and UK branch address).

Contact Us

We can advise you on the best options and accommodate you to suit your needs as an individual or as a business

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