As of April 6th 2014 there will be some changes to the way self employed people are paid through an agency. HMRC are imposing new legislation called ‘Onshore Intermediaries & False Self Employment’.
This will unfortunately stop recruitment agencies and intermediaries engaging you as a Self Employed CIS registered contractor.
The legislation may still be subject to slight alteration prior to its final form on 6th April, but it is very likely that Nasa and other intermediaries will not be able to offer the Construction Industry Scheme (CIS) as a way of paying you. These rules extend to all recruitment agencies and umbrella companies, like Nasa Umbrella.
What will happen?
As such you will be transferred to our PAYE Umbrella service for all payments made after 6th April. You will have PAYE, Employee and Employer NI (included in your uplifted rate from the agency) deducted by Nasa Umbrella LTD and paid to HMRC on your behalf.
Some of the advantages of this to you are:
Your earnings will have tax & NI deducted at source rather than a bill at year end based on your profit
Enhanced employment rights including Statutory Sick, Maternity and Paternity Pay
You can reduce you tax and NI bill with reclaimable expenses such as travel and meals – meaning you get the tax relief each time you are paid (rather than at year end)
Tax and NI relief on any pension contributions
Our industry low fee will remain at just £12.50 per week
Nasa will be sending the following documents for you during the transfer process:
Contract of Employment
Nasa Employee Handbook
Nasa Expenses Guide
Nasa Online Portal Guide
Payroll/Expense Process Document specific to your current agency
These documents will help in the transition from CIS to PAYE and tell you what you will need to moving forward to get paid.
What do you need to do?
We have been dealing with your agency regarding this, so all will be looked after for you. You will simply need to read the documents we send to you and sign your employment contract. If you wish to claim expenses, you will be able to follow the process outlined in the Expenses Guide.
Please note that the last payments we can make to you under the current system will be on Friday 4th April.
As this is imposed by government we have to follow these guidelines. We understand this will impact some more than others, so if you have any questions please feel free to get in touch and we will assist as much as we can.
If there are any changes, for example a delay in the legislation coming into force, we will of course let you know.