You should pay your Class 2 National Insurance each week directly to HMRC. Log into the online CIS portal to do this – www.hmrc.gov.uk. You will then need to pay Class 4 National Insurance via your annual self-assessment tax return.
If your UTR number has not been registered for the CIS scheme, tax will be deducted at the higher rate. This is really easy to do and can be done over the phone by calling the following number: 0300 200 3210
Your role needs to fall into the categories indicated by HMRC guidelines. We will then need to establish your self employed status to ensure you do not fall under supervision, direction and control (SDC). If you role is under SDC you will deemed as employed and payments will be subject to Tax and NI. We will still be able to help you with our Umbrella payroll.
Your agency will notify us of the Gross amount you are to be paid. We will deduct your tax and retain a small margin for our services. Once we have received cleared funds from your agency we will transfer the money to your account as a faster payment and send you a text notification. You will also have a remittance advice available to view on our online secure portal.
Unfortunately as a self-employed contractor you will not be entitled to holiday pay, sick pay and other statutory payments. If you want the flexibility of temporary contracts with the benefit or employment then you should consider AZebra Umbrella.
AZebra provide you with the flexibility of self-employment but without the hassle of running your own business. You may also find that some recruitment agencies are not prepared to deal directly with Sole Traders.
The 2014 Finance Act amended s44 ITEPA 2003 and introduced measures designed to tackle so called “False Self Employment:” preventing employment intermediaries being used to avoid employment taxes and obligations by disguising employment as self-employment. This means that it is essential that your payroll provider establish that you are genuinely self employed before paying you via CIS. We conduct stringent tests to establish the status of each worker for each assignment. We would never put you at risk of investigation or unpaid taxes.
Yes, you will need to keep us updated of where you are and the assignment details. We can liase with your agency and arrange payments. This keeps all your information in one place and ensures consistency.