Do you have contractors working on assignments that are both inside and outside IR35? Would you like them to be paid umbrella and gross dependant on this basis?
ePayMe offer various umbrella services but can also offer a service which is intended for engaging PSC contractors.
A PSC is a Personal Service Company, also known as a Limited Company. A PSC is a type of intermediary where the worker has a material interest in the Company so is usually the Director or able to control more than 5% of the ordinary share capital of the company directly or indirectly.
The options for PSC vary, depending on the role or assignment and if it is determined to be inside or outside the scope of IR35.
If the role is outside IR35, you can pay Tax as self-employed and inside IR35 means that you’ll be taxed as an employee. Many workers within the private sector work on assignments that are different from week to week and month to month.
It is important to remain flexible and offer them services to suit them. ePayMe can offer your workers (where applicable and dependant on the sector they work within) umbrella payroll or and an outside IR35 offering.
There are several attractions for PSC’s, such as reimburse mileage, VAT reclaim (if applicable) and other expenses incurred by the PSC, to be included in the annual accounts and set against Corporation Tax.
It enables the worker to demonstrate continuity to a lender, rather than a succession of engagements through several umbrellas.
We won’t restrict you to provide you with Limited Company Services, you can utilise whoever you like to look after this or we can recommend reputable accountants or software licencing if you would like to manage this process yourself.
We find more and more tech savvy workers are choosing the latter option. If their business has no real complications, the software will manage everything and provide all the information required to submit returns to HMRC and payroll.
With the digitising of Tax, it won’t be long before this is all very easy to do and your workers won’t require to pay hundreds each month for accountancy services, if their returns are straight forward and can do this themselves simply.
More and more workers are skipping the PSC route, rather than looking at all the determinations of inside or outside for each assignment. These workers are sticking to umbrella payroll and completing a P87 at the end of the Tax year. We can also help to provide support and guidance to these workers.
Is your provider accredited by Professional Passport, associated with APSCo and The REC? Does your payroll partner provide your workers with support, guidance and solutions to suit them? If not, then why not talk to us today to see how we can support your business and workers. ☎️ 01252 863700 or email us