PRECISE PAYROLL - RUN LIKE CLOCKWORK
Umbrella PAYE Calculator
WHAT SETS CLOCKWORK CONTRACTING APART FROM ALL THE REST?
Clockwork Contracting is one of the first in the UK to be audited in real-time directly from our payroll software. The audit results are initially cross referenced with RTIs sent to HMRC, and then an audit report is sent to each of our partnering agencies.
PAYE - Umbrella
Agency/ Temporary Workers who are engaged by agencies or end clients often use umbrella companies as they are convenient and hassle-free. As the employer, Clockwork deducts Pay As You Earn (PAYE) Tax and National Insurance (NI) on behalf of the worker.
Umbrella companies serve as employers to workers on a variety of temporary assignments and are fully compliant payment intermediaries. The worker is able to undertake many assignments for different clients while maintaining a continuous period of employment.
SELF-EMPLOYED - CIS
HM Revenue & Customs (HMRC) established the Construction Industry Scheme (CIS) to cater to self-employed contract workers in the construction industry. With the amendment to section 44 of the Income Tax (Earnings & Pensions) Act (often referred to as the agency legislation), there are now stricter rules surrounding the employment status of contractors.
At year-end, they must complete a self-assessment tax return to calculate their tax and national insurance bill for the year. Any CIS deductions that were made will be offset against their final tax bill.
CIS 20% - The standard deduction of 20% for contractors who have their UTR number registered with HMRC through CIS.
CIS Emergency – The higher rate paid tax at 30% may be taken if the UTR number provided is either incorrect or has not been registered under CIS with HMRC.
CIS Gross – In some cases HMRC will grant a UTR Number gross status, meaning no deductions will be made on the contractor’s payments.
Professional Employment Organisation – PEO
The Clockwork Professional Employment Organisation solution is an ideal solution for contractors deemed to fall within the parameters of IR35. In this situation, the recruitment agency or end hirer of the contractor may transfer the contractor’s contract to Clockwork for PAYE employment. This removes any employment status risk (no risk of tax charges or penalties) and allows the contractor to continue in their current role or work compliantly in any future role where they use Clockwork PEO.
Tired of the stresses, overheads, and administrative burdens of an internal payroll system? We can provide a dedicated Payroll Manager to liaise directly with HMRC and/or pension providers on a business's behalf, thereby delivering on all the advantages of a streamlined payroll department with none of the associated difficulties.