Introduction To PAYE
In the UK, Pay As You Earn Tax is the system that HMRC uses to collect Income Tax and National Insurance Contributions (NICs) from employees’ pay as it is earned. The amount due is calculated by your employer according to HMRC regulations and then deducted from your earnings before being paid to HMRC each month. Expenses are also dealt with as part of the PAYE process and determination of what is/is not allowable is, again, down to HMRC, therefore, other than the margin retained, your take-home pay should be the same through whichever company you chose.
If you chose to operate via a Limited Company, you will be taking on the responsibility of registering for PAYE with HMRC, unless you are outside IR35 which is becoming increasingly difficult. Not only will you have to make PAYE payments to HMRC each month, but you will also have to retain money in the company for corporation tax and, maybe, VAT. Late filing of any of these tax payments will give rise to fines and also interest payments on the debt.
AOG PSC Limited provides a hassle-free solution for those agencies and contractors who do not wish to run their own payroll. AOG PSC Limited offers a wide range of benefits to both companies and contractors including a fixed fee payment schedule based on periods worked by each individual, (irrespective of earnings). We also offer guaranteed payment dates with full weekly or monthly payroll. Totally compliant with HMRC guidelines and legislation, AOG PSC Limited is the payroll solution preferred by recruitment agencies and numerous contractors.
- Fully HMRC approved PAYE service provision
- Guaranteed payment dates by BACS to contractors
- Fixed-fee structure based on each individual
- Weekly or monthly payment cycles
- Production and posting of Pay Advice slips
- Saving unnecessary costs on payroll staff or software
- Annual production of P60s, P14s and P35s
- Monthly liaison with HMRC for all Tax & National Insurance returns
Join our solution for contractors who have opted for our Salary and Expenses payroll company which allows the individual to reclaim genuine business expenses. Have the freedom and the security of being employed, with money set aside for holiday pay in accordance with working time legislation and all statutory benefits paid where these meet the legal criteria. AOG PSC Limited is compliant with HMRC regulations and only allows legitimate receipted claims for expenses. Conforms to National Minimum Wage regulations. AWR Compliant Contracts.
AOG PSC Limited can relieve you of all of this stress and hassle as we take care of all PAYE and VAT payments to HMRC, you won’t even have to complete a self-assessment tax form for the income that you earn whilst on assignment with us – so why not let us make your life that little bit easier?