INFORMATION FOR CONTRACTORS

For most people working on temporary assignments within the Public Sector, an umbrella solution is the safest and best option as it allows you to concentrate on your assignments with very little administration.

With PSC’s umbrella solution you become an employee of PSC and you receive full UK employment rights and protection.

PSC’s umbrella solution represents an excellent alternative to being paid on your agency’s payroll. More importantly, this option is often one of the only options available to Public Sector contractors due to the IR35 legislation introduced by the government on April 2000.

UMBRELLA PAYE SCHEME:

An umbrella company acts as an employer to agency contractors who work under a fixed term contract assignment in the United Kingdom for Public Sector Authorities. Public Sector Authorities will issue contracts to Umbrella Agencies via Recruitment Agencies and as such their agency liability would be reduced, and they would not fall foul of the new implications of the IR35 legislation (explained below). Once engaged we will then pay all of the contractors through an Umbrella PAYE model.

IR35 LEGISLATION:

Umbrella companies have become more prevalent in the UK since the British government introduced IR35 legislation which creates “tests” to check the employment status of contractors or temporary workers working within the Public Sector, meaning that if you do not pass tests you must be paid via an PAYE scheme such as PAYE Umbrella.

You will be employed under the protection of a Contract of Employment and because you will not be responsible for paying your own tax, employers NI and Employees NI, Employers NI and due to the IR35 legislation mentioned above, you are prohibited from setting up your own Limited company and you will not usually need to employ an accountant, as all of the administrative burden of paying Tax and National Insurance is removed from the contractor.

HOLIDAY UPLIFT AND ADDITIONAL EMPLOYERS NI:

It is also important to understand that PSC is under the full control of HMRC. The payments are done through the PAYE system using SAGE software. All hourly rates from Public Sector authorities include an uplift to incorporate items like Holiday Pay and additional Employers National Insurance. This means that you will take home as much of your pay or more than you would as a standard PAYE employee, and this includes the small margin you pay for to us for dealing with all of the administration.

BENEFITS FOR CONTRACTORS

So how will you benefit by working with Public Sector Contracting?

Your full employment rights are protected and guaranteed by PSC

You can work safe in the knowledge your PAYE and NI deductions have been taken care of in accordance with HMRC legislation.

You will have full continuity of employment whilst moving from agency to agency

One tax code across multiple agency assignments

You will have access to PSC’s workplace pension scheme

Option for weekly or monthly payments

Guaranteed fee of £10 per week or below

Public Sector Contracting are extremely proud to be fully compliant with HMRC legislation and undergo a regular auditing process to ensure this. By undergoing this auditing process, we have ensured the gold standard for our processes and procedures within the payroll industry.

BY REACHING THIS STANDARD, WE CAN GUARANTEE TO:

Offer peace of mind to all of our contractors seeking a payroll solution

Isolate any potential issues before they affect our contractors

Offer our contractors a payroll best practice solution

Have checks in place that test and measure controls and prevent payroll errors

Highlight all areas for development and improvement within the payroll process

Have suitable processes in place for preparing and delivering legislative changes

Be dedicated to compliance and best practice in payroll