Frequently asked questions

Umbrella PAYE

What is an umbrella company?
An umbrella company is a contractor that employs people under PAYE. You work as an employee of M&S On-Time Services Ltd by providing services to our clients.
What are my rights as an employee of M&S On-Time Services?
As an employee of M&S On-Time you will receive a contract of employment, which means all your administration and employment benefits are fully taken care of and you pay your tax and NI contributions through the normal HMRC channels.
Am I entitled to statutory benefits?
As an umbrella employee, you will have the same statutory rights and allowances as a permanent employee. Statutory payments include: Statutory Sick Pay (SSP), Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), Statutory Adoption Pay (SAP),
Should I be concerned about IR35?
IR35 address the avoidance of Tax and National Insurance contributions through the use of Personal Service Companies, as an employee of M&S On-Time you will fall outside the scope of the IR35 as you will have your full PAYE Tax and NIC’s deduced from your salary.
How is my Tax and NI calculated?
As an employee you will be required by HMRC to pay both TAX and NIC’s on your salary, and will be taxed under PAYE. The amount that you are paid will depend on your earnings, employment status, personal allowance threshold and any additional allowances you receive.
Who pays Employers NI?
As your employer, M&S On-Time pays the Employers National Insurance from the money received by the client (for the provision of services) we retain our margin and account for employer’s NI (currently 13.8%) as company costs, before paying you your salary and any tax free expenses.
When will I get paid?
Your salary will be paid into your account before 10pm on a Friday, however, this can vary depending on the agency you are working through.
How is holiday pay calculated?
M&S On-Time holiday year runs from 1st January to 31st December. In accordance with the Working Time Regulations 1998, you are entitled to 28 days paid holiday in any one year (inclusive of public holidays). If your employment commenced part way through the holiday year, then your holiday entitlement will accrue at a rate of 2.33 days per month.You will received “rolled up” holiday pay, meaning you will be paid your holiday pay each week, as opposed to receiving a payment on your days off. This will be clearly identified on your pay statement.
What expenses can I claim?
A full list of claimable expenses and instructions on how you can make a claim are available on our website, or in the welcome pack provided upon registration with M&S On-Time. www.mnsontime.co.uk/expenses
Is it necessary to retain my expense receipts?
HMRC require that you keep a valid receipt to prove that you have incurred your expense wholly and inclusively in the course of your duties. This is the case for all claims you make and will ensure that you have the relevant proof available in the event of an investigation.
Does M&S On-Time have a dispensation agreement in place with HMRC?
Yes. The Dispensation we have in place will allow us to offset an agreed amount of expenses without having to provide details of them to HMRC.The Dispensation does not, however, enable us to allow expenses when no real expenditure has taken place, nor does it mean that the employee should not keep receipts for all business expenditure. Put simply, receipts are your 'insurance' if the HMRC investigate you, as you will need to be able to provide proof of any claims you make.

CIS (Self Employed and Limited Company)

What is the CIS scheme?
Construction Industry Scheme sets out rules on how payment to subcontractors working in the construction industry must be handled by the contractor.
Can I be paid under CIS after the new legislation?
Yes. Here at M&S On-Time we do not believe CIS is dead, we work hand in hand with agencies and operatives to prove lack of supervision, direction and control for high skilled operatives.
Can I work through a Limited Company?
Yes. If you have already set up your own limited company, and we are satisfied you are clearly in business of your own accord, clearly understand and can run your own company, with your own bank account and your own accountant.
Do I have to be paid under CIS even if I work through my limited company?
CIS relates to payments made to subcontractors (including limited companies) working in construction, if your trade fall under this category you will need to register your companies UTR with HMRC for the scheme.
How much tax will M&S On-Time deduct from my pay?
When we verify your UTR with HMRC they will give us one of three rates of deduction: Standard rate (Payment under deduction) - 20%, Higher rate (Unmatched rate) - 30%, Gross (Payment without deduction) - 0%.
Why do I have to prove my self-employed status on every project?
The self-employed checklist you fill out is specific for the assignment you are working on, as assignments change so may your tasks and duties, which is key to proving your employment status.
Will I need to complete a tax return at the end of the year?
This will depend on your personal circumstance, your accountant will be able to assist you with this, if you do not have one, we will help guide you in the right direction.
Am I responsible for paying my own tax and national insurance contributions?
If you're self-employed, you are responsible for paying your own tax and National Insurance contributions. You'll need to keep business records and details of your income so you can fill in an annual Self Assessment tax return. You may also need to register for VAT.
Will I receive holiday pay?
No. You are only entitled to holiday pay as an employee or worker. As you are not an employee of the company you will not qualify for sick pay/maternity pay/paternity pay from us.