Pay and Tax
Pay Status – PAYE or Limited Company
PAYE
There are two forms of payment options available to contractors once
they have got work. The first is to work on a pay as you earn (PAYE)
basis. This means your tax and national insurance will be automatically
deducted from your gross pay. In order to work through this system you
need a UK bank account. Not having a NI number will not stop you being
paid, however you will need to make an appointment with your local DWP
office to obtain one. To apply for a NI number call (020) 7210 5983.
You will need your passport, proof of UK address and a letter
confirming that you have gained/are seeking employment.
Limited company
Some temporary and contract workers decide to work through their own
limited company or through an umbrella company. If you utilise either
of these methods, you would invoice us for your gross salary through
the relevant company. These methods may provide benefits to various
candidates.
Income Tax & National Insurance
If you choose to work through the PAYE system you will
automatically be liable for Income Tax and National Insurance. An
employer will deduct both income tax and national insurance in the UK
directly from an employee’s earnings.
Holiday Pay for PAYE Temps
All contractors accrue holiday enabling you to book and be
paid for up to 24 days (pro rata) holiday per year (this comprises 20
‘basic' days plus 4 ‘additional’ proportionately accrued over the
holiday year).
What are the benefits of the accrual method? You
will receive payment for your holiday at the time you take it, you can
even elect to be paid for public holidays (eg Christmas and bank
holidays).
What is the holiday year? The holiday year runs from the 3rd of April to the 2nd of April the following year.
How do I book my holiday? You must get sign off from your line manager. Forward your request to: timesheets@laurencesimons.com
to ensure you are paid for annual leave (assuming you have accrued
sufficient holiday at the point of leave). You can also fax or post
this request. Ensure that you give both parties sufficient time to find
cover for you if necessary.
If I do not take my paid holiday, am I entitled to be paid accrued holiday pay at the end of my assignment?
If you do not take the holiday you are entitled to and you complete
your assignment within the leave year, without starting another
assignment (through Laurence Simons) for at least two weeks, you will
be paid any outstanding leave entitlement.
If I do not take the holiday I have accrued by the end of the leave year (2nd April) will I lose my entitlement?
You will lose all ‘basic’ leave entitlement; only ‘additional’
entitlement may be carried forward into the next leave year for a
maximum of one year.
How will I know how much holiday I have accrued? Your payslip will display your total leave entitlement, leave taken and leave remaining.