Let us clear up any confusion…
Below you will find the answer to our most frequently asked questions, if you need help with anything else, pick up the phone and one of our friendly team will answer your questions.
PAYE – means Pay as you earn. This is how many permanent employers pay their contractors and umbrella also pay by PAYE, which means we declare their tax and NI contributions to the HMRC via real time information (RTI). RTI reports are submitted weekly to the HMRC
SDC – means Supervised, Directed and controlled. A contractor is subjected to supervised direction or control by any person. The type of expense that an PPS employee can claim will depend upon their SDC status, their job role and their contract of employment. Since the 6th April 2016 contractors are no longer able to claim tax relief on their expenses for travelling to and from the end client if they are subject to, or to the right of Supervision, direct and control (SDC) in the manner their contractor do their work. If the contractor is not subjected to, or the right of SDC then they can claim tax relief for your home to client site if they demonstrate the costs have incurred. Please see expenses guide for more information
AWR 12 week qualifying – Once the contractor has been on the assignment for 12 weeks they are entitled to basic employment rights such as annual leave and rest breaks etc
AWR Day one rights – contractors are entitling to day 1 rights as soon as they start their assignment, which are they having the right to facilities and information on job
AWR – means agency workers’ regulations was brought out in 2010 to enable contractors to be entitled to same or no less favourable treatment to basic employment.
PSC – means personal service company – some contractors operate through their own limited company and get paid this way for contractor work.
Outside IR35 – To operate outside IR35 a contractor needs to be able to prove that the way they work is independently. For example – the client has no real control over your duties. If someone is ruled as falsely operating outside of IR35 the contractor can be forced to pay back all previously unpaid tax and a penalty to a similar value and interest for the time.
IR35 – relates to running a limited company and how an individual pays themselves. There are two ways. Inside IR35 through PAYE or outside IR35 which is paying yourself minimum wage and dividends. IR35 was introduce in 2000 designed to catch contractors operating as a ‘disguised employee’
Inside IR35 – means that the contractor is seen as an employee and means they need to be paid by Pay as you earn (PAYE)
Since the 6th April 2016 we are required to run through your supervision, direction and controlled status. The type of expenses an PPS employee can claim depends on your right of Supervised, Direction and Control (SDC), your job role and contract of employment. PPS employees follow their expense policy by submitting accurate claim of business expenses that qualify. We will be able to discuss this with you prior to registering.
When you sign up with an agency as a temporary worker your agency offers you a PAYE rate to be paid direct through themselves and a Limited rate of pay which you will receive when you opt to be paid via Umbrella company. The uplifted rate of pay for working through Umbrella company, not only includes your holiday pay, but also includes the cover for your employers National Insurance contributions, therefore the Employers NI deduction is at no extra cost to you.
PPS Pay will process payment by same day payment on a weekly basis. A pay statement is emailed to you and we will send you a SMS to confirm payment has been sent. The pay statement will show your net figure being transferred to your account as well as the contributions for income tax and national insurance contributions.
Registration can be completed on-line, over the phone or via email. You will be sent a welcome pack detailing the documents we require, welcome information and your assigned account manager details.
As an employee of PPS Pay you will not fall under IR35 rules as you are paid via PAYE.
Our umbrella margin covers 10 million employer’s liability insurance, 5 million public liability insurance and 2 million professional indemnity insurance. There is no additional cost to you.
PPS Pay believe we offer hassle-free service with no catches or hidden fees.
- Payroll run 3 times a day 5 days a week through faster payments
- In house accountants
- Dedicated Customer Service Team
- Full employment rights
- Have continuous employment with multiple assignments
- Submission of tax, NI contributions to the HMRC via RTI
- Same day Faster payment with SMS at no extra cost
PPS Pay is an umbrella company and we act as your employer to agency contractors working through recruitment agencies. You will work with PPS Pay under a contract of employment and we will process your payment on a weekly basis.