Whilst contracting, Temporary Workers have to decide how they wish to be engaged whilst on assignment, taking into account the requirements of the role they are undertaking, individual circumstances and their own specific needs.
Sitec is committed to providing compliant engagement options and we ensure our processes and contracts comply with all current and relevant legislation. The options are;
- Limited Company
As Sitec can not recommend any particular route, we always recommend you seek professional advice before deciding which option is best for you, however, we can support you once you have chosen the best option for you based on your preferences and assignment details.
A simple option where you are engaged directly by Sitec working as a PAYE (Pay as You Earn) contractor. When you submit an authorised timesheet to us, we pay you a net amount after deducting all the relevant levels of Tax and National Insurance. Although you wont become an 'employee' of Sitec, you will be afforded certain employment rights such as Holiday Pay, Statutory Sick Pay, protection against unlawful deductions from wages and protection against unlawful discrimination.
The Umbrella option is similar to the PAYE option although you are engaged directly as an employee of the Umbrella Company and will have the same statutory privileges as any other employee. The umbrella company will pay you and is responsible for deducting your Tax and National Insurance. There are a myriad of Umbrella Companies in the market who are able to offer a range of packages and benefits usually for a small monthly fee. If this option is of interest, you can review and discuss with any of the service providers on our Approved Suppliers Register, all of which have passed compliance and due-diligence checking undertaken by Sitec.
Setting yourself up as Director of a Limited Company offers greater flexibility and tax efficiency, however, with power comes responsibility and you will be responsible for the ongoing administration of the company, including ensuring correct levels of Tax and National Insurance are made to HMRC, operating the bank account and arranging insurances. You will also have to consider IR35 for every contract you undertake and ensure that working arrangements and contract status is compliant in order to realise the full advantage of being your own boss. You should always seek independent financial advice from a tax advisor or qualified accountant who can also assist you with setting up the business and the on-going administration.