Pay Schemes
When working through an Agency such as Entrust you have a number of options regarding the way you wish to be paid each of which has its own advantages and disadvantages:
Option 1 - PAYE
As a Paye worker you will be paid weekly, at your agreed hourly rate, upon submission of an authorised (signed) timesheet. Provided we receive your timesheet no later than 12 noon on Tuesday, you will receive an Entrust Payslip showing all of your Tax and national Insurance contributions together with your net pay which will be received into your bank account by 4pm on Thursday.
Holiday Pay - you will be entitled to 28 days holiday per year which will accrue at a rate of 12.07% of the hours worked each week. For example, if you work a 35 hour week, you will accrue 35 x 12.07% hours holiday pay i.e. 4.22 hours. When you decide to take a holiday, we will deduct any holiday hours taken from your current accrued hours and this will be shown on your payslip.
Expenses - Any expenses incurred during the course of your duties will be reimbursed each week. Mileage rates vary between clients but range from 40p to 56p per mile.
Option 2 - Limited Company
If you consider that you are operating independently and outside IR35 Regulations then you may wish to consider operating through your own limited company which can bring a whole host of additional benefits.
With your own limited company you will be the sole Director and Shareholder so will retain all statutory responsibilities. This includes tax and national insurance adminstration and payment. This may appear a daunting prospect although, once set up and with the help of a good personal services company is relatively straightforward. When operating through your own limited company you could increase your effective take home pay by as much as 30%.
If you would like to know more about operating your own Limited Company then, in the first instance, contact Phil Sola at Churchill Knight who will explain how this might work for you.
Option 3 - Umbrella Services
If you do not feel comfortable operating your own limited company or are working inside IR35 Regulations but would still ike to maximise your effective take home pay, then you may wish to consider operating through an Umbrella Organisation using a Managed Service Provider. This offers some of the benefits of working through a limited company without the statutory and admin responsibilities.
When operating via an Umbrella Organisation you will receive an enhanced rate of hourly pay that includes your holiday pay at 12.07% together with the employers national Insurance contributions at the prevailing rate. You will still be paid weekly, at your agreed hourly rate, upon submission of an authorised (signed) timesheet.
The main benefit of working through an Umbrella Organisation is that you are eligible for expense dispensations which may significantly increase your net take home pay.
For example a worker earning £15.00 per hour on standard PAYE and working a 37 Hours week will take home a net pay of approximately £410.00 per week and accrue 4.46 hours holiday pay.
The same worker operating through an Umbrella Organisation and travelling 100 miles per week to and from their place of work would earn £19.00 per hour and would take home a net pay of approximately £490.00. An increase of £80.00 per week.
if you would like to find out more about working through an Umbrella Organisation then contact one of our preferred Managed Services Companies from the list below:
