Limited company contractors

We hope you find this information useful.

Should you be contracted with Advantage Resourcing via a Limited Company, you will be given a Limited Company Supplier Agreement. An assignment Schedule will accompany the Agreement and will be issued prior to the start of your assignment, such as start date, end date, pay rate, hirer name and location, job role, and notice period.

Limited company contractors and tax compliance

If you are working through your own Limited Company, you will be aware that the Government has stringent anti-tax avoidance legislation. To comply with this, you will need to provide proof of the following:

Your Limited Company is registered in the UK
You are the Director and majority shareholder of the company
The company’s bank account is in the UK. Please note the Isle of Man is not under UK jurisdiction
You are sufficiently insured for the duration of the assignment

Frequently Asked Questions about Limited company contractors

IR35

IR35 is HMRC legislation designed to prevent tax avoidance by contractors who are supplying their services to clients via an intermediary (i.e. an agency). If an assignment is deemed Inside IR35, the agency must deduct PAYE and NI tax at source prior to paying your limited company. If an assignment is deemed Outside IR35, the agency will process a gross payment to your limited company and the limited company will remain responsible for tax deductions.

From 6th April 2021, your IR35 status will be determined by the end client. When we advertise and discuss an assignment with you, you will be advised if the role is Inside or Outside of IR35. If you are working for a Public Sector organisation, you will be aware that the IR35 rules are already in place.

For further information on IR35, please visit: gov.uk/guidance/understanding-off-payroll-working-ir35 and gov.uk/guidance/check-employment- status-for-tax

Setting up a limited company

If you are looking to set up a Limited Company, we recommend that you seek independent advice. Advantage Resourcing is not qualified to provide financial or practical advice in this respect. If at any time you wish to amend your Limited Company details, we require a minimum of two weeks’ notice in writing. When communicating this, please email your consultant and copy in the Payroll Team at Payroll.query@rgfstaffing.co.uk.

Payment

As a Limited Company Contractor, we will work with you under a self-bill agreement. This means that you will not have to raise invoices.
Advantage Resourcing will issue a Limited Company Remittance advice, and this will act as the invoice. Payment will be made upon receipt of authorised timesheets and paid weekly in arrears. Please note that timesheets must be submitted by 5pm Monday following the week worked to ensure payment can be released on the Friday.

Tax Deductions

Please also note that all payments to Limited Company Suppliers who are Outside IR35 will be inclusive of tax and NI contributions. It is the Limited Company Supplier’s responsibility to ensure these are paid to HMRC on time. Advantage Resourcing does not offer tax advice, nor take responsibility for any Limited Company Supplier’s failure to pay their tax commitments on time.

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Limited company contractors