Important Key Information Documents
As part of our due diligence regarding payment options as and when you start working on any assignment through us, we need to inform you of your choices in the different payment types available to you.
You may already have discussed these with your consultant, and may have made your decision on which one to choose, however we need to verify that you have seen all options available to you.
With this in mind we have created three Key Information documents, outlining the example pay, any deductions and prospective net pay on each arrangement, accessible through our website.
Option 1, PAYE through Linsco highly recommended
PAYE – Pay as your earn scheme.
- You will be paid by Linsco Ltd under our own PAYE scheme under a contract for service.
- The HMRC will inform Linsco of your tax code automatically, however Linsco cannot change any codes unless instructed by the HMRC.
- Tax, National Insurance and any statutory deductions are made at source leaving you with your own net pay paid direct to your own bank account.
- Any pension, student loans, attachment of earnings are deducted by Linsco on your behalf..
- You will receive an emailed payslip outlining your hours, rate and total pay, clearly detailing any tax, national insurance, pension or student loans.
- Any holiday accrued whilst working will be saved, and paid out when you take time off, unless you have opted to have it paid weekly alongside your wage payment..
- Any payments made are immediately sent via Real Time Information to the HMRC allowing any tax code changes to be made weekly.
- When you finish working through us, you will receive a P45 to give your next employer, and at the end of the year you will receive a P60 statement of earnings.
- Linsco do not charge you for any service we offer you.
- We have prepared an example for you to see on our website here.
With PAYE, there is no third party involved, Linsco pay you and deal with all tax deductions.
Option 2, Intermediary Company
PAYE - through an umbrella third party intermediary
- You are not paid by Linsco, your employer is the Umbrella Company or intermediary.
- Your rate quoted by your consultant at Linsco, is not the amount you will be paid by them.
- The rate we quote you is the amount that we send to the Umbrella company, to make their own deductions from before paying you.
- Details of how they come to their final rate of pay are decided by that company, not Linsco.
- The Umbrella company will be your employer and will make any required deductions necessary.
- They deal with your tax, National Insurance, pension and will charge a fee for doing so, they will advise the fees.
- We have been sent an example of how an umbrella company breaks down your payment and can be seen on our website here.
- You should ask your Umbrella company for your own illustration of how they can pay you and what you will come out with.
It may be in your benefit to be paid under option 1 PAYE through Linsco rather than Umbrella.
We vet the suppliers of Payroll Intermediaries, and currently have three provider son our approved listing. Speak with your consultant who will explain who they are.
Option 3, Personal Service Company
PSC – paid through your own Limited Company
- You will already have your own Limited Company Set up and be the sole director registered under Companies House
- Linsco work in the Construction Industry Scheme (CIS) and will therefore verify that your company is set up under the CIS scheme.
- If your company is matched by the HMRC under CIS, we will pay your work either Gross or net depending on what the HMRC tell us.
- You are required to submit Company invoices to Linsco for each payment period, once received we will release payment.
- Linsco cannot deduct any tax or statutory deductions, as you are employed by your own company.
- IR35 – you will be subject to the HMRC IR35 regulations and if found to fall inside the regulations, will be taxed and deducted National Insurances under the ‘Off-Payroll’ working regulations.
- The decision regarding your IR35 status lies with the end client and Linsco.
- Details of key information regarding the payment through your own Limited Company are on our website here.
The information and link provided above are for your benefit, and to enable you to make the right decision and have transparency around your pay method when you start any assignment through Linsco.
We ask that you take time to read the information, and should you have any questions please contact your consultant.