The Pay As You Earn (PAYE) system is a method of paying income tax and national insurance contributions. Your employer deducts tax and national insurance contributions from your wages or occupational pension before paying you your wages or pension.
Pension Auto Enrolment
The introduction of automatic enrolment has already started and will affect every single employer in the UK over the coming months and years. When your staging date hits, you’ll be required by the new workplace pensions reform to automatically enrol any eligible employees into a workplace pensions scheme when you run payroll.
An umbrella company is a special type of Limited Company that exists for the sole purpose of employing “self-employed contractors” so that they can carry out short term assignments without the hassle of sorting out their own taxes or invoicing for their work.
The deductions count as advance payments towards the subcontractor’s tax and National Insurance.
Contractors must register for the scheme. Subcontractors don’t have to register, but deductions are taken from their payments at a higher rate if they’re not registered
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