What's changed - FAQ

[b r]

Employees NI and income tax will be withheld from the payment and the agency will forward that to HMRC on your behalf.

Income tax assessed on a week/month 1 basis - therefore 40% for the majority from Invoice 1?

[Andy Hallett]

Employees NI and income tax will be withheld from the payment and the agency will forward that to HMRC on your behalf.

Income tax assessed on a week/month 1 basis - therefore 40% for the majority from Invoice 1?

Income Tax based on the workers tax code as I understand.

[eek]

Income Tax based on the workers tax code as I understand.

only if proved to the agency I guess.

[b r]

Income Tax based on the workers tax code as I understand.

How will anyone know if you're on two contracts or not, until invoices are processed maybe I suppose with RTI?

[DaveB]

Income Tax based on the workers tax code as I understand.

How will anyone know if you're on two contracts or not, until invoices are processed maybe I suppose with RTI?

Not relevant if it's based on tax code. You'll be taxed under PAYE + Employers NI for a PS gigs based on your Tax Code, paid via your Ltd in the normal way for non-PS gigs and will have to declare and pay as appropriate on your SATR.

If you can live on the "salary" from your PS gig then the best bet would be to just leave the non-PS income in the company warchest, or use it to make pension contributions.

If you have sufficient income to live on from the non-PS gig, or a warchest sufficient to see you though the contract, you could put all the PS salary into a pension, claim tax relief on the contributions via your SATR to reduce your taxable income to £0 and pay divi's out of the company at 7% up to the lower tax limit to live on.

[Agent]

Does anyone have any understanding on how liability is passed up the chain?

i.e We supply a contractor to a consultancy (e.g. CSC), they then put someone onsite at the NHS.

Does the buck stop with CSC or the agency that supplied to CSC?

[eek]

Not relevant if it's based on tax code. You'll be taxed under PAYE + Employers NI for a PS gigs based on your Tax Code, paid via your Ltd in the normal way for non-PS gigs and will have to declare and pay as appropriate on your SATR.

If you can live on the "salary" from your PS gig then the best bet would be to just leave the non-PS income in the company warchest, or use it to make pension contributions.

If you have sufficient income to live on from the non-PS gig, or a warchest sufficient to see you though the contract, you could put all the PS salary into a pension, claim tax relief on the contributions via your SATR to reduce your taxable income to £0 and pay divi's out of the company at 7% up to the lower tax limit to live on.

Salary sacrifice via an umbrella would get that down to £20 a week... Pensions are really awkward here so I don't want great detail...

[eek]

Does anyone have any understanding on how liability is passed up the chain?

i.e We supply a contractor to a consultancy (e.g. CSC), they then put someone onsite at the NHS.

Does the buck stop with CSC or the agency that supplied to CSC?

don't take this the wrong way but I don't know and being that its agency related rather than contractor related I'm not that concerned.

Hopefully Andy Hallett will pick up the question and answer it.

[Andy Hallett]

Does anyone have any understanding on how liability is passed up the chain?

i.e We supply a contractor to a consultancy (e.g. CSC), they then put someone onsite at the NHS.

Does the buck stop with CSC or the agency that supplied to CSC?

The liability for duducting is with the payer. In the chain you descibe, that is the agency.

The liability for determination is with the Public Sector client.

[Agent]

The liability for duducting is with the payer. In the chain you descibe, that is the agency.

The liability for determination is with the Public Sector client.

The contractor will be paid by the consultancy (CSC in example), we then pay CSC in turn.