We have set up a limited company on your behalf and your status is that of employee/shareholder.

Your income is generated from the company by either a weekly or monthly salary, whichever you choose, and a dividend payment as a shareholder in the company.

THE BENEFITS FROM THE SCHEME

It is our aim to provide you with an increased spendable income in the region of 10%. This is possible because dividend payments are not subject to National Insurance Contributions and consequently your net income is greater than that of a salary received under PAYE.

Since 1 January 2000 the Inland Revenue directed that a CIS tax of 23% (now 18%) be deducted from the gross earnings of those contractors who are employed within the construction industry. This amount will more than cover the Portstaff Management Fees, the NIC due on the salary and the Corporation Tax. The balance remaining after these deductions have been made will be refunded by the Inland Revenue to your Company and we will in turn pay this to you.

We also undertake to complete the annual returns and deal with all administration matters relating to the limited company.

BUSINESS EXPENSES

Any business expenses (i.e. motor mileage) which you wish to set off against your taxable income should be detailed on the Expenses Claim Form, sent to you on commencement of employment, and forwarded to PML with supporting receipts or other relevant documentation.

HOW PAYMENT IS MADE

You are required to forward your statement of hours (timesheet) on a weekly or monthly basis, depending on which payment schedule you have chosen, to Portstaff Management and your Agency. Immediately this is received Portstaff Management will raise an invoice from your company, for your services, to your Agency/Contractor.

On receipt of payment of the invoice Portstaff Management will arrange for the transfer of funds to your personal bank account by BACS payment. Your account will be credited the funds approximately 3 days after the payment has been received by Portstaff Managements.

TAX RETURNS

Should you be required to complete a tax return at the end of each financial year we would be more than willing to assist you.

LEAVING THE SCHEME

Leaving the scheme is a simple matter and only requires that you inform Portstaff Management and your Agency. Portstaff Management will issue you with a P45 as soon as all monies owed to you have been paid.