Umbrella PAYELimited CompanySole TraderFAQs

FAQs

Umbrella FAQs

What is an Umbrella company?

A: An umbrella company is a company that acts as an employer to agency contractors who work under a fixed term contract assignment, usually through a recruitment employment agency in the United Kingdom

What will be my employment Status?

A: If you chose our umbrella service you will enter into a formal employment contract with us. You are therefore a permanent employee of Fencross Management Solutions Ltd. This gives you the benefit of full employment rights which with us

Will I be entitled to SSP, SMP, and SPP?

A: Yes, under your employment with Fencross Management solutions you will benefit from all statutory employment rights.

How much will it cost me?

A: Fencross do not charge any set up or close down fees of your account with us. You will only be charge of margin of just £15.00 per week pay rolled that is deducted from your gross pay that will cover all costs of the service.

What do I do if I don’t have a P45?

A: If you do not have a P45 please complete a HMRC New Starter Checklist Form and return it to Fencross with your application.

This form enables Fencross to request a tax code on your behalf from HMRC. Until the tax code is issued, your payments will be processed via a basic rate tax code

What documents will I need to register?

A: To enable Fencross to comply with eligibility to work regulations, we will require you to send us a copy of personal documents entitling you the right to work within the UK. We would also need a proof of your NI number and proof of address to accompany this.

A: A full list of acceptable ID documents can be found on your payroll application or by clicking here: - https://www.gov.uk/government/publications/right-to-work-checklist

I don’t understand my payslip?

A: Each Fencross payslip consists of 3 parts to make sure you can see clearly every component.

If you have any queries, please contact the team on 03333660011 where a member of the team will be happy to help you.

When will Fencross pay me?

Fencross will send your payment to your personal bank account upon receipt of funds from your agency on the agreed pay date.

The payment will be sent by electronic bank transfer (Faster Payment Method) meaning funds will clear your account within 3 hours of them being despatched.

end faq

Limited Company FAQs

Will I benefit from a Limited company?

A: Depending on your individual situation, a member of our team can advise whether you would be personally beneficial from a PSC or Umbrella services.

A few key questions to consider include:

  • Are you happy to spend time each month on your financial admin?
  • Will you be contracting for more than 12 months?
  • Will your contract fall under the IR35 ‘hidden employment’ tax regulation?
  • Are you able to be a Director?
  • Do you earn more than £15 per hour/ £32,000 per year?

How much will it cost me?

A: Fencross do not charge any hidden fees for this service. You will only be charge of margin of just £15.00 per week pay rolled that is deducted from your gross pay that will cover all payroll costs.

Do Fencross provide my accountancy services?

A: No, Fencross Management Solutions do not provide your company with any accountancy services. However, we do work alongside a range of companies that are able to provide this for you. Please call the office on 03333660011 if you would like more information.

What information will I need to provide for my limited company?

A: Fencross will need to obtain a mixture of personal and business information from you before we can begin to pay into your Limited company. To see the full list of documents required, please see the checklist on the reverse off your registration form or give a member of our team a call on 03333660011.

What is IR35?

A: IR35 is Government legislation relating to Intermediaries introduced on 6th April 2000 in the Finance Act 2000. It was introduced to stop Contractors avoiding tax and National Insurance through the use of Intermediaries such as Personal Service Companies or Partnerships. Historically people saved National Insurance contributions by drawing out "wages" via a dividend. IR35 ensures you pay tax similar to what you would pay if you were employed rather than being a contractor.

Do I need to register for VAT?

A: It is currently compulsory to register for VAT if your company’s taxable turnover is more than the threshold of £83,000 in a 12 month period. However, if your business turnover is currently below £83,000, you can still voluntarily register for VAT. For more information please see: - https://www.gov.uk/vat-registration/when-to-registerhttps://www.gov.uk/vat-registration/when-to-register

end faq

Sole Trader FAQs

How much will it cost me?

A: Fencross do not charge any hidden fees for this service. You will only be charge of margin of just £15.00 per week pay rolled that is deducted from your gross pay that will cover all costs.

How do I register as a Sole trader?

A: You must register with HMRC - you can do this is online by using this link

https://www.gov.uk/new-business-register-for-tax.

How can I tell if I am genuinely self-employed?

A: A person is self-employed if they run their business for themselves and take responsibility for its success or failure. They must not be working under, or subject to the right of supervision, direction or control by anybody else.

To check your employment status with HMRC, please visit https://www.gov.uk/employment-status/selfemployed-contractor

Do I need to pay tax?

A: You must submit your tax return to HMRC each year for all work carried out as a Sole Trader. When you register as a Sole Trader, you are also registering to submit an annual self-assessment tax return. HMRC will provide you with a UTR number for this purpose.

Your tax return will confirm the gross income you have received in the tax year and will also document your expenditure. When the income total is deducted from the expenditure, plus any other allowances you are entitled to, you are left with a net profit figure and this is the amount you are then taxed on.

Do I need to pay NI?

A: Yes, you will be required to pay Class 2 and, where relevant, Class 4 National Insurances. These are the current 2016/17 rates:

Class 2

£2.80 per week

Class 4

9% on profits between £8,060 and £43,000

2% on profits over £43,000

What deductions will Fencross take from me?

A: Fencross will only deduct your CIS tax due along with our weekly margin. We will verify you using your UTR with HMRC and make the relevant deductions at source.

end faq