What are the various forms of Freelancing within Critical Project Resourcing that are available to clients and candidates?

We do like to keep it simple and offer only a few methods. We remain strictly boring and risk adverse when it comes to paying freelancers.

Our PAYE Scheme
A basic Pay As You Earn scheme (PAYE) run by Critical Project Resourcing. Salary sacrifice schemes are not allowed as you are not “employed”. The tax rate is calculated by our company accountants. We use standard Recruitment and Employment Confederation contracts and update and amend accordingly to the client’s terms, this a full Real Time Information process with full disclosure of all income generated through your assignments.

Whilst this isn’t utilised often, it is important that it exists for candidates who may not want to utilise or benefit from an umbrella provider.

PAYE points to remember:
You are not employed by us instead it is “contract for services” (effectively “self-employed”) but you cannot be paid as “self-employed” ie GROSS. Instead we administer a PAYE scheme which includes any holiday pay and any applicable statutory pay.

Umbrella companies
These have to be established in the UK with over 3 years of accounts and must complete our questionnaire.  We use well known industry organisations like Giant and Brookson who sign our terms of business.

These are third parties, whom become your employer, and typically you will have an employment contract with full employment protection rights and operate within a PAYE Scheme. As you are employed you can benefit from Government salary sacrifice schemes and allowable expenses.

Umbrella companies points to remember:
• You are welcome to recommend an umbrella company you have worked with before but they must pass our audit.
• If an umbrella company can drastically alter your TAX Home pay compared to another Umbrella company I would be wary.

Personal Service Companies (PSC)
We welcome the provision of your services through the creation of a Personal Service Company (PSC). This is where you have properly formed a company to provide your services. You would act as the Company Director and you would be remitted the hourly/daily rate in full to the company, without any deductions, for you to properly declare.

However, please be mindful of why you are forming a PSC and the nature of the work you undertake as you will be responsible for the correct application of any tax law.  As a PSC you may or may not be in scope of the Agency Workers Regulations, and you may or may not Opt of Conduct Regulations.

Just because you run a PSC, does not mean that PAYE doesn’t have to be applied. In fact, there are only certain situations where it shouldn’t be applied, people refer this often to being outside of IR35.  Because it can be complicated to establish and manage correctly a PSC many individuals engage “advisors”.  Here you should be careful that your advisors are not running your company for if did they could be defined as a Managed Services Company and thus the income should have PAYE applied.

PSC points to remember:
• Just because you run a PSC does not mean that PAYE shouldn’t be applied
• Beware of the advisors that sell you PSC and the dividend route, as being “more in your pocket” than PAYE. There is no comeback on them if they get it wrong but there is on you.

CIS Schemes
Whilst we are fully registered as a Gross Contractor and Sub Contractor we take direction from our clients as to whether the work undertaken falls within the scope of the CIS scheme or not. Any workers will still need to be engaged through our PAYE, approved umbrella or their own PSC.

We do not operate the flowing:

Self-Employment schemes, Elective Deduction Models, Offshore or entertain any “innovative” ideas.

We remain strictly boring and risk adverse.