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Candidate Services - Pay
Different methods of payment
- as a contractor there are a variety of ways in which your
pay can be processed. As we are not independent financial advisors we cannot
advise you on which method is best for you, but we can give you a rough outline
of how each method works and direct you to sites where you will be able to get
more information.
Pay As You Earn (PAYE)
is a way of spreading your income tax over the tax year.
The tax year starts on 6 April of one year and ends
on 5 April in the next. Under PAYE, your employer takes tax from your weekly
or monthly earnings and pays it over to the Inland Revenue.
You don't pay tax on all your income. Everybody can
earn or receive a certain amount in each tax year free of tax. This amount is
called a 'personal allowance'. The Chancellor sets the amounts of the
allowances each year in the Budget.
For example, in the tax year 2003-04 (6 April 2003 to
5 April 2004) the basic personal allowance is £4,615.
There are other allowances. These reduce your tax
bill by a certain Amount. You can get these at any Inland Revenue Enquiry
Centre or Tax Office.
Please do visit
www.inlandrevenue.gov.uk
for
more information.
Ltd Company
- with
a one person limited company structure:
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The contractor is the director of the
company and in full control of all company transactions.
-
As director they are responsible for
compliance with all company and other statutory issues, including company law
requirements to file accounts and returns to Companies House, calculation and
payment of corporation tax liabilities, payroll calculations and returns and
various other statutory and other Government requirements.
-
As director they raise all company
invoices, run a simple accounting system to record transactions and appoint an
accountant to deal with accounts, taxation and payroll matters.
To get advice on how to set up your own Limited
Company please do visit
www.businesslink.gov.uk.
* - If you wish to add a link to your site here as a
company/organisation who provide advice on how to set up your own company,
please do contact us on
info@ggrecruitment.co.uk
Umbrella Company -
with an umbrella company solution:
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The contractor would not be a
director or the responsibilities associated with running a limited company.
-
The umbrella company provider would
take care of all accountancy and taxation matters and also deal with all
administration matters.
-
The contractor completes a timesheet
and forwards it to the umbrella company, who then invoices the agent.
-
Following payment by the agent to the
umbrella company, a payment is made by the umbrella company to the contractor.
Specific candidate Information:
Temporary/Contract/Permanent
| Pay | Umbrella/Ltd Companies
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