Contractor FAQs
We understand that making the most of your contract income is your priority. However, it’s our priority to ensure that your income is calculated and taxed correctly and in line with UK tax law and legislation.Below are a few questions we often get asked about contractor pay.
Got any other questions? Don’t hesitate to get in touch
There is no difference between umbrella and PAYE.
Any umbrella company that processes payroll for contractors working in the UK should process it via the PAYE system.
If you’re unsure whether your umbrella company is processing your pay through the PAYE scheme or whether your earnings are being calculated and taxed correctly, get in touch with a team member for some clear and honest advice.
If you are a contractor using an umbrella company service, then the umbrella company should be your employer.
Your umbrella company should issue you a contract of employment, process your payments and ensure that you receive statutory entitlements and workers’ rights.
The income you earn as a contractor, whether on a PAYE basis, via a limited company, or through the CIS scheme, is all taxable.
The type of tax that you pay will depend on your employment status.
At Big Fish Group, we’ll help you understand the best solution for you and what tax you need to pay.
It depends on your aspirations.
If you’re looking at contracting as a career, then setting up your own limited company may be an option you want to consider. However, being a director of a limited company comes with responsibilities meaning that it’s not always the best option for some people.
Setting up a limited company can have some financial benefits, but it’s always best to consider your options first.
If you’re unsure, why not give the team at Big Fish Group a call? We’re always on hand to help.
You are taxed differently if you contract through a limited company, but this does not necessarily mean you earn more money.
The tax you pay whilst working on your assignment will depend on your employment status. In line with IR35 legislation, the end client is responsible for determining your employment status.
The Big Fish Group team can help you understand how your employment status will affect your earnings, so please get in touch for a chat with a member of the team.
