About Paycheck Services LTD - Leading UK Umbrella Company

Who are Paycheck Services LTD?

Paycheck Services is an economic alternative to an accounting or book keeping company, We specialise in offering a Compliant PAYE Umbrella Service. Established in 1997 by an engineering contractor for other contractors, Paycheck Services has been responsible for the payroll of freelancers and contractors from all fields of the contracting industry, working anywhere in the United Kingdom.

Why are we the Best Umbrella Company?

The experienced and friendly staff at Paycheck Services understand how important it is to all contractors to keep finances in order. That is why our aim is to be the UK's best umbrella company, providing today's contractors with the peace of mind they are looking for regarding their Payroll. You can rest assured in the knowledge that you are in safe hands.

• IR35 Compliant Umbrella Company
• No additional Tax liabilities
• Approved HMRC Tax free expenses
• Construction Industry Scheme (CIS) Registered

At Paycheck Services we maintain a compliant PAYE umbrella company which puts us outside the scope of the recent MSC Legislation.

We pride ourselves on being one of the most efficient and reliable umbrella payroll companies on the market. On joining, you will be provided with a dedicated consultant from our team of highly trained professionals. Our consultant's aim is to ensure that you get the most out of using our Services.

Paycheck Services LTD Construction Industry Scheme (CIS) Provider

The benefits of being cis registered and using Paychecks CIS service are it is hassle free and great way for contractors in the construction industry to be paid on a self-employed basis.

All your invoicing is taken care of whilst you are on assignment through an agency.

How much will it cost you?

Our Fee for this CIS service is only £12.00 per week * After tax

We have NO HIDDEN charges. What you see is what you pay.

What you get?

• Same day pay – no delay
  
• Less paperwork
  
• Regular Income
  
• We verify your CIS Tax status
  
• Flexibility of being self-employed
  
• Dedicated staff here to help
  
• One low fee for 1st class service
  
• A company with over 10 years knowledge and experience taking care of you

What is the Construction Industry Scheme (CIS)?

The CIS scheme is a government initiative which controls how payments are made to contractors within the construction industry.
Since April 2007 all contractors who sub- contract within the construction industry have to register with the HMRC CIS scheme. To prove they are registered as self employed they will obtain a Unique Tax Reference (UTR) number. HMRC determine the amount of Tax to be deducted, this can be at 0%, 20% or 30%. We make the relevant Tax deduction and pay this to HMRC on your behalf, so you can be sure your CIS tax deduction is up to date. Upon submitting your self assessment there may be a balancing Tax figure to pay or to be refunded.

How do I register?

Simply call the CIS helpline on 0845 366 7899. Registration takes about 20 working days and is FREE. Visit http://www.hmrc.gov.uk/cis/ for more info.

Is the CIS scheme for me and what are the benefits of being CIS registered?

• Your job role can be anything from a welder, plumber to surveyor as long as you are contracting within the construction industry only.
• You are already self employed but want to take more assignments through recruitment agencies.
• You work within the construction industry and are thinking about becoming self employed.
• Reduce your paperwork burden and relax knowing that all your CIS deductions are taken care of and paid to HMRC.

This is an effective and simple way for self employed contractors working within the construction industry to receive a regular income whilst taking assignments through an agency.

How does this scheme compare to traditional self employment?

Traditionally you have the hassle of running your own business, quoting for jobs, generating and chasing your invoices, waiting 30 days for payments, completing Tax returns. You may also find that some recruitment agencies are not prepared to deal directly with sole traders.

Under the Paycheck CIS scheme, you except the assignment with the agency, we raise the invoice as required by the agency, we chase any invoice payments, the agency send us the money every week or month and we pay the monies to you on the same day, so you get a regular income. You do not need to wait 30 days for payments. We make the Tax deductions and pay to HMRC.

Working for an agency?

We are here to make life easier for you (the sub contractor) as well as the Agency, reducing their administration for sole traders and your day to day paperwork.

How does Paycheck CIS pay me?

We sub-contract your services to the recruitment agency. We raise the invoice and receive the Gross funds (inclusive of VAT) from the agency. The relevant CIS deduction is taken and paid to HMRC on your behalf. The remaining funds are then transferred to your personal bank account. Your monies will be in your bank account the same day as we receive the funds from the agency. A statement of payment and deduction will be posted/e-mailed to you every time a payment is made to you.

Construction Industry Scheme (CIS) FAQs

Some frequently asked questions about Self-employed status and the CIS scheme.

Do you deduct my National Insurance contributions?

No. National Insurance contributions (NICs) are not taken from your income. You need to organise payment of these separately by setting up a small weekly direct debit with the NI contributions office. Your contributions will be at the lower rate of 8% as apposed to 11%, you will also have to pay £2.40 per week.

What about Income Tax?

Although we will deduct the relevant percentage under the CIS scheme, as a self employed trader you are responsible for your own Income Tax and national insurance contributions and for filing a self assessment Tax return at the end of the financial year. You will pay Income Tax at the same rates as an employee.
You should bare in mind that there may be a balancing figure to Pay to HMRC at the end of the financial year and you should make due provision.

Can I claim expenses?

Yes. As a self employed trader you are eligible to claim expenses that you have incurred solely as a result of carrying out your work and these are taken into account at the end of the year. It is therefore important that you keep a record of the cost of any materials, tools and other equipment necessary for you to work, during the course of the year. Also, any mileage, subsistence costs (accommodation, food etc) incurred with travelling to any work places.

Why doesn’t everyone work self employed then?

You can only register as self-employed because of the way you supply your services to your clients and that the contract you have, does not fit within the legal definition of an employee/employer relationship.

Do I get holiday Pay or sick pay etc?

No. You are only entitled to holiday pay as an employee or worker. As you are not an employee of the company you will not qualify for sick pay/maternity pay/paternity pay from us. You may qualify for some from HM Revenue and customs.

Sole Trader, LTD Company or Umbrella Services?

If you're currently in the process of making the decision between being permanently employed or taking the leap into the potentially turbulent world of contracting/freelancing then there are a few things to consider before you commit to becoming self employed.

1. Advantages/Disadvantages of being a Sole Trader

Advantages

• Quick and easy to start
  
• Simple record keeping (it must however be proper accounting records)
  
• Keep all profits (after tax)
  
• No costs unless you employ a Bookkeeper/Accountant
  
• You are not required to charge your customers VAT unless you go over the the £64,000 threshold
  
• Keep all the profit – as the owner, all the profit belongs to the sole trader.
  
• Business affairs are private, competitors cannot see what you are earning

Disadvantages

• Liable for all the money our business owes
  
• Personal possessions at risk
  
• Taking time off could be a problem
  
• Holidays and sickness are unpaid
  
• Loss of some social security benefits

2. Advantages/Disadvantages of being a Limited Company

Advantages :

• Wider range of expenses, ie. accountancy fees, equipment and software costs
• Having complete control over your financial affairs.
• Separate Legal Identity
  
• Members' liability is limited ("limited liability")
• Protection of Company Name
  
• Better Pension Schemes
  
• Less risk to personal and family assets

Disadvantages :

• There is a setup cost involved
  
• Higher paperwork burden
  
• Having an Accountant is usually advised
  
• Keeping track of expenses requires discipline
  
• Other people, including your competitors can see your accounts and other information that you are obligated to file at Companies House.
  
• If you are over the audit threshold, you will also have to pay to have an audit.
  
• You will have to deal with Corporation Tax as well as your personal tax situation.
  
• Costs are incurred wether you are in work or not

3. Advantages/Disadvantages of Using an Umbrella Service Company

Advantages :

• Significantly reduced administration and paperwork
• You only need to send your timesheet and expense details
  
• Tax and NI are deducted before you receive your money
  
• Works well for short or long term contractors
  
• Compliant With Legislation
  
• Tax Efficient
  
• You only pay fees while you are working.
  
• IR35 Compliant
  
• Invoices issued to Agency/Client.
  
• Processing of PAYE/N.I. payments to HMRC.
  

Disadvantages:

• More expensive way than doing your tax and NI yourself
  
• You are reliant on the umbrella company to collect your money from the client or agent and then pay it on to you
  

If you are planning to use an umbrella company then you need to ask three key questions:

a) What exactly will they charge b) How long have they been trading for? c) and what services/benefits do they provide?

Answers in the case of Paycheck Services LTD

a) Fees from as little as £10.20 (netted down) per week
b) Paycheck Services LTD was established in 1997
c) IR35 Compliant Umbrella Service

• No additional Tax liabilities
  
• Approved HMRC Tax free expenses
• Fast Set Up - 24 Hours
• Dedicated Personal Consultant
• 100% Compliance With Legislation
• Tax Efficiency
• Quick Pay
• APPROVED HMRC DISPENSATION, Enabling you to claim legitimate business expenses
• Your Own Personal Payroll Consultant
  
• Fast and Simple to Set Up
  
• Exclusive Member Benefits
  
• Invoices issued to Agency/Client.
  
• Processing of PAYE/N.I. payments to HMRC.
  
• Production of individual payslips with breakdown of all deductions.
  
• Completion of P60’s and P35’s at the end of the financial year.
  
• FREE Mortgage/Loan references
  
• FREE Employer references
  
• Routine, worry Free, payment by BACS/CHAPS making life easier, for you, the contractor.
  
• Daily Pay Run - Our payment schedule matches the Agency/client. We credit your bank account the same day as the money arrives with Paycheck.
  
• Prefer to receive your money by cheque – not a problem. The choice is yours.
  
• Holiday fund available – Helping you to save your money

4. How to maximise your income

In terms of your ability to maximise your income, becoming a Sole Trader or forming a limited company is the most attractive option, allowing you typically to take home over 80% of what you earn; this compares favourably with umbrella services but depends on the needs of each individual. If you have the time and discipline to chase money, record expenses whilst keeping within the correct legislation then becoming a Sole Trader/Limited Company may be for you, however if you dont want the hassle of managing your finances, chasing money, invoicing etc and would prefer to spend more time earning money then an Umbrella Company could be the perfect solution for you.

5. How can you enable your clients to deal with you easily and make payment swiftly

In this day and age there is a wide variety of payment methods, the quickest being BACs, CHAPs or Card Payment either with a PDQ machine in person or over the phone. However, to be able to process these methods of payment can be quite costly so it is unlikely that as a sole trader you would have these methods of payment. Larger LTD companies can usually justify the cost of these facilities to ensure that their customers can make payments quickly and easily however, should you be a one man band then it is highly likely that you will have to be paid via cheque which takes three days to clear once you have been able to get to the bank to pay it in or paid in cash in which case you need to ensure you make accurate records the same day so that you don't forget. Umbrella Companies are usually able to accept the more instant type of payment methods and the good ones even send the money on to you the very same day.