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 - Umbrella Services
Entrust works with a number of payroll services organisations operating what is known as Umbrella Companies.
An umbrella company gives you benefits of working through a limited company without the statutory and admin responsibilities. If you are working through an umbrella company you do not need to worry about IR35, Managed Service Company legislation etc.
When operating via an Umbrella company you will receive an enhanced rate of hourly pay that includes your holiday pay at 12.07% together with the employers national Insurance contributions that we would normally pay at 12.8%. 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 a standard 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 Friday.
The main benefit of working through an Umbrella company is that you are able to claim travelling and subsistence which can 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 Company 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 Company - then call us today on 0333 12345 30 or contact Mark Taylor at Ricson Services.
Option 3 - Limited Company
Operating through your own limited company can bring a whole host of additional benefits although this has its complexities and you must be certain that you are operating within IR35 Regulations.
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 accountant, should be fairly straightforward. When operating 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 speak to Ian Brindley on 0333 12345 30. Alternatively, contact Nick Cooper or Damian Ball at Barringtons Accountants Telephone 01782 713700.
See also Useful Information for the effective running of a Limited Company
