PAYE V's Ltd Company

Ltd Company

  • The contractor is the director of the company and in full control of all company transactions or must own three quarters of the shares.
  • As the director they are responsible for compliance within their company and all other statutory issues, including company law requirements, filing accounts and returns to Companies House, calculation and payment of corporation tax liabilities, payroll calculations and returns and various other statutory and other Government requirements.
  • As director they raise all company invoices, run an accounting system to record transactions and appoint an accountant to deal with accounts, taxation and payroll matters.
  • Unified Payroll pays 96% into your limited company business account, the contractor will give his accountant his books to calculate tax and national insurance.
  • We deduct 4% which is our umbrella margin
  • The contractors work arrangement must fall outside IR35 in order for him to get paid through Ltd Company.

PAYE Umbrella

  • Working under the PAYE umbrella scheme through Unified Payroll means that you, the contractor, essentially becomes an employee of Unified Payroll.
  • You submit timesheets to the agency who will, in turn, send a remittance to us, we will then invoice the agency for the work done by you. You will then be paid as a PAYE employee less a small margin for their services.
  • The umbrella company provider would take care of all accountancy and taxation matters and also deal with all administrative matters.
  • Getting paid through the PAYE scheme is usually best for those starting out in agency work. There is less paperwork involved as the umbrella agency takes care of all your tax and national insurance contributions as you are technically employed by them.
  • You will typically take home is around 67-69% in this scheme