Frequently asked questions about our Umbrella Company Option
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1. When will I get paid?
When funds are received from the agency we will make a BACS transfer into your private bank account same day.
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2. How will I receive details of the payment?
Details of the payment will be emailed to you on the day of the payment.
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3. Why do I have to pay both employers NI and employees NI?
As a compliant umbrella company, we make payments to the Inland Revenue for both employers and employees national insurance to comply with the regulations as applied by the Inland Revenue.
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4. What happens to the genuine business expenses incurred in my contract?
The expenses are deducted from your contract income and paid gross back to you. They are paid back to you with no tax and national insurance deductions.
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5. How long will it take to join Paramount Solutions Limited?
Once contact has been made, you can become an employee of Paramount Solutions Limited straight away. We will send you forms to complete and return to us
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6. Am I covered for Insurance?
You will be covered for Professional Indemnity Insurance £5,000,000, Employers Liability Insurance £10,000,000 and Public Liability Insurance £1,000.000. There is no extra charge for this.
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7. What is IR56 and how does it relate to IR35?
The IR56 Schedule D/Schedule E test is used to determine if a person is in or outside of IR35. It determines if the worker is an employee or is self employed in relation to the contract with the client or end user.
The test will ask:
- Are you at financial risk in a project?
- Could you make losses as well as profits?
- Can you subcontract his/her own workers or provide substitutes for the job instead of him/her?
- Do you control the work? e.g. Where and when you work plus what and how you do your job.
Other things to consider in order to establish whether a person is employed or self employed are:
- The duration of the contract
- The intention of the parties involved
- The number of engagements
- The pay structure e.g. do you receive holiday or sick pay and how is payment made – by task or by the hour or week?.
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8. How does IR35 affect me?
You are an employee of Paramount Solutions Limited. IR35 will not apply to you. Your contract income after deducting genuine business expenses will be subject to tax and national insurance.
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9. Will I be able to receive dividends?
10. Will I have any further Tax liabilities?
PAYE and NI are deducted and paid to the Inland Revenue by us. You do not need to do a thing. However if you have any other income from other sources you may need to complete a self-assessment.
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11. What will be my take home pay from the contract?
12. Do you run a child care voucher scheme?