Contract types

The PAYE contract

The Pay As You Earn (PAYE) system is a method of paying income tax and national insurance contributions. Our payroll department will deduct tax and national insurance contributions before paying you your wages. Wages include your sick pay, maternity or paternity pay, and adoption pay.

You will pay taxes each time you are paid throughout the whole year rather than paying taxes in one lump sum. We are responsible for sending the taxes over to HM Revenue and Customs (HMRC).

At the end of the tax year, you will get a P60 which lays out the total amounts paid to you this year and the following year.

If you pay tax on your wages under PAYE, the PAYE system can also be used to collect the income tax on any other sources of taxable income you receive.

HMRC uses a tax code to tell us how much tax to deduct from your wages. If HMRC does not have enough information to issue a full tax code, they will give us an emergency tax code until more information is received and the tax code can be adjusted.

Holiday pay is covered under the working time regulations of 1998. According to regulations, you are entitled to 28 days paid leave per annum, this includes bank holidays.

This entitlement accrues after you have worked with Anglo for 13 continuous weeks. For more information, please see the full details in your Terms of Engagement.

48 Hour Working Week under the Working Time Regulations 1998.

Download a PAYE contract template.

What we need from you:

To ensure that you’re set up correctly in our system, we just need a few documents from you. Please email payroll@anglo.com with copies of the following as soon as possible:

• Please send us a copy of your P45. If you don’t have this, please complete a Starter Checklist (previously a P46) which can be downloaded from the HMRC website.
• Should your contract expire and you obtain work from another source, we will issue you with a P45.
• Bank account details (account name, account number, sort code and branch address).
• Your maximum working week is 48 hours averaged over a period of 17 weeks. Should you wish to be able to work longer hours, please sign the 48 hour opt-out agreement, and return to Anglo.

Limited contract

If you haven’t done so already, you will need to form a limited company and open a business bank account, with the help of your accountant. Limited companies can be purchased “off the shelf” quite quickly and easily or personalised to you. Please obtain advise specific to your services from your accountant. Also high street banks can take up to 6 working weeks to set up a business account however there is also ability to use online business accounts which are much quicker to access. The director controls invoicing, the company bank account, and decides how much to pay themselves, which is made up of a combination of salary and dividends.

The limited company contract will be with us. Your accountant will be able to advise further on what you are able to claim such as legitimate business expenses for example hardware and software, training, professional subscriptions, business telephone, accountancy fees plus any other business costs. including some client reimbursement: i.e. travel between site and visits.

You should be able to take home around 75% – 80% of your contract by working through your own limited company.

Anglo Technical Recruitment processes your payroll, however we are not set up to help you start your own limited company. It is your responsibility to source your own limited or umbrella company.

That said, we have been working with umbrella companies and advisers that we know well we are happy to recommend to you please email compliance@anglo.com for a list of our Umbrella PSL.

To take a look at an example contract Download a limited contract template.

What we need from you:

To ensure you’re set up correctly in our system, we just need a few documents from you. Please email payroll@anglo.com with copies of the following as soon as possible:

• Certificate of Incorporation from your limited company or umbrella company. You will need to send us a copy of the Certificate of Incorporation before any payments can be released. The Ltd Co. must be a registered and Trading Company.
• Should your Ltd Co. be VAT registered, we require a copy of the VAT registration document and each invoice you submit with VAT must show your VAT registration number.
• For details of the current VAT registration threshold, please visit www.hmrc.gov.uk; to register for the Flat Rate Scheme please visit www.hmrc.gov.uk or consult your accountant.

• Bank details for your limited company or umbrella company (UK Branch name and address, your business account name, account number, sort code along with a copy of a business named statement or void cheque/paying in slip clearly showing the business account).

• Upon your contract confirmation details being confirmed with the placing consultant via the client our compliance department will send you out your contract for services including terms of assignment to complete, sign and return to compliance@anglo.com .

PAYE Umbrella Contract

You will essentially become an employee of the umbrella company. You will submit timesheets to the umbrella who will, in turn, invoice us for the work done by you. You will then be paid as a PAYE employee less the umbrella fee.

Anglo Technical Recruitment processes your payroll, however we do not act as an umbrella company. It is your responsibility to source your own limited or umbrella company.

You are usually allowed to claim some basic expenses, however be cautious of umbrella companies advertising ‘special’ dispensations or expense policies ‘approved by’ the Inland Revenue, that claim to allow expense claims without the need to produce receipts. The Inland Revenue are now challenging any company considered to be encouraging tax avoidance through fraudulent expense claims.

You will typically take home around 60% – 65% of your contract by working through an umbrella company.

We have been working with umbrella companies and advisers that we know well and are happy to recommend to you, please email compliance@anglo.com  for a list of our Umbrella PSL.

To take a look at an example contract Download an umbrella contract template.

What we need from you:

To ensure you’re set up correctly in our system, we just need a few documents from you. Please email payroll@anglo.com with copies of the following as soon as possible:

• A Certificate of Incorporation from your umbrella company. You will need to send us a copy of the Certificate of Incorporation before any payments can be released.
• VAT Registration Certificate of your umbrella company.
• Bank details for your umbrella company (account name, account number, sort code and UK branch address).