Pay and Tax
Pay Status – PAYE or Limited Company
PAYE
There are two forms of payment options available to contractors once they have got work. The first is to work on a pay as you earn (PAYE) basis. This means your tax and national insurance will be automatically deducted from your gross pay. In order to work through this system you need a UK bank account. Not having a NI number will not stop you being paid, however you will need to make an appointment with your local DWP office to obtain one. To apply for a NI number call (020) 7210 5983. You will need your passport, proof of UK address and a letter confirming that you have gained/are seeking employment.
Limited company
Some temporary and contract workers decide to work through their own limited company or through an umbrella company. If you utilise either of these methods, you would invoice us for your gross salary through the relevant company. These methods may provide benefits to various candidates.
Income Tax & National Insurance
If you choose to work through the PAYE system you will automatically be liable for Income Tax and National Insurance. An employer will deduct both income tax and national insurance in the UK directly from an employee’s earnings.
Holiday Pay for PAYE Temps
All contractors accrue holiday enabling you to book and be paid for up to 24 days (pro rata) holiday per year (this comprises 20 ‘basic' days plus 8 ‘additional’ proportionately accrued over the holiday year).
What are the benefits of the accrual method? You will receive payment for your holiday at the time you take it, you can even elect to be paid for public holidays (eg Christmas and bank holidays).
What is the holiday year? The holiday year runs from the 3rd of April to the 2nd of April the following year.
How do I book my holiday? You must get sign off from your line manager. Forward your request to: timesheets.uk@markssattin.com to ensure you are paid for annual leave (assuming you have accrued sufficient holiday at the point of leave). You can also fax or post this request. Ensure that you give both parties sufficient time to find cover for you if necessary.
If I do not take my paid holiday, am I entitled to be paid accrued holiday pay at the end of my assignment? If you do not take the holiday you are entitled to and you complete your assignment within the leave year, without starting another assignment (through Marks Sattin) for at least two weeks, you will be paid any outstanding leave entitlement.
If I do not take the holiday I have accrued by the end of the leave year (2nd April) will I lose my entitlement? You will lose all ‘basic’ leave entitlement; only ‘additional’ entitlement may be carried forward into the next leave year for a maximum of one year.
How will I know how much holiday I have accrued? Your payslip will display your total leave entitlement, leave taken and leave remaining.