Questions and answers on this page are tailored specifically for our Futurelink service.
Q. Who pays the tax and NI?
If you work as a sole trader using the Futurelink payroll solution you are responsible for your own tax and Class 2 NI. At year-end you need to complete a Self Assessment Tax Return.
If you want help with this, look at our Futurelink Premium product, which includes a self assessment tax return as part of the package or call us on 0845 620 9255. We can answer some of your questions and we can also can send you a tax pack which contains contact details of our sister company, who offer a pay as you go self assessment solution. They will be able to assist you with completion of the end of year tax return.
Business expenses are tax-free and are deducted before tax and NI are calculated.
Q. Who pays the VAT?
When we handle your payroll we charge VAT on invoices to your UK clients.
You don’t need to be VAT registered yourself unless the value of your taxable supplies in the past 12 months or less has exceeded the current VAT registration threshold (£73,000 as at January 2012) or the value of your taxable supplies in the next 30 days alone is expected to exceed this threshold. You would then need to register for VAT and add VAT to your invoices. We would add this amount of VAT to your payment.
If you are VAT registered you can claim back VAT on goods and services that are used in the business. Ensure that you keep all receipts.
Q. What are your fees?
Fees for our Futurelink payroll solution vary depending on the invoice total and start from as little as £5.00 per week. Contact us for more information.
Q. Do I need to complete a tax return?
Yes. Once you have registered with HMRC as a sole trader they will automatically send you a self assessment tax return to complete. Here you can detail all of your work related expenses, which should then reduce your overall tax liability. If you require assistance in completing your tax return please contact us on 0845 620 9255.
Q. Do you provide any insurances?
Yes, we have worked with our brokers to offer a range of insurances to contractors. Cover for Employers and Public Liability Insurance at £10 million and £5 million respectively is included with all our payroll solutions free of charge. Professional Indemnity Insurance can be arranged, if it is a requirement of your contract, at £11 per week and only applies the weeks that you work. Site Accident Insurance is automatically provided at a very competitive rate of £2.50 per week, only for the weeks worked.
Q. What is IR35?
IR35 is the government’s process to determine your employment status. In short it is in place to determine whether you are a genuine contractor; or whether you should be employed and are avoiding paying PAYE on your full earnings. For more information, visit http://www.hmrc.gov.uk/ir35/. We can arrange an assessment of your contract terms if you would like to undertake one for a small additional charge.
If you have any further questions, please contact us and we will be pleased to help you.