Payment services

Who am I working for?

You will work for IN-SYNC and your services will be supplied to IN-SYNC’s clients, who are generally recruitment agencies. 

Do I pay PAYE and NI?

As an employee of IN-SYNC, your employment income will be subject to Pay As You Earn (PAYE). This will mean all tax and National Insurance contributions will be deducted at source for the work that you do for us.

Will I have to do a self-assessment?

No, all taxes will be appropriately accounted for, and at the end of the tax year, you’ll have no further liability for the work that you do for IN-SYNC.   Tax returns generally only need to be completed by self-employed individuals. However, HMRC can request anyone to complete one at any point for a given tax year.

What monies come out of my pay?

Our costs will usually include our tax, employer's National Insurance and apprenticeship levy responsibilities, as well as employers’ pension contribution that we’re required to account for by law. These costs are not retained by IN-SYNC and are paid across to HMRC and the pension company NEST.

Our margin and costs are accounted for from the money that our client pays to us and are deducted from the gross pay before your payment is calculated.

What is the National Minimum Wage?

The National Minimum Wage (NMW) is the minimum hourly rate that employers must pay their workers. It covers workers in the UK and is divided into rates that apply to workers of different ages. Details on request.

What is the National Living Wage (NLW)?

The government has introduced a new mandatory National Living Wage (NLW) for workers aged 25 and above.

NMW rates change every October. NLW rates change every April. For the current rates, please contact our customer services team.

All employees of IN-SYNC are employed at an hourly rate equal to the current NMW/NLW (as applicable). This is referred to in your contract of employment as your ‘Contractual Pay’, is the only amount that we are contractually obliged to pay you and is your rate of pay.

Do I get holiday pay?

As an employee, holiday pay is given in addition to the NMW and itemised on the employee’s payslip. All employees can request payment of holiday pay in writing to the payroll department. When paid out, holiday pay will be subject to income tax and National Insurance contribution deductions.

How am I paid?

1. We pay you your contractual pay for every hour you’ve worked (in accordance with the NMW/NLW rate).  
2. We’ll pay you any additional pay (over and above your contractual pay) where this has been agreed between us.    
3. On top of this, we’ll pay you holiday pay — calculated as a percentage of your contractual pay.  
4. We’ll also deduct any amounts from your pay that are required by law (including tax and NI) or that you have specifically authorised. 

How do I know what my hourly rate is?

You will be advised by your agency as to the rate of pay for the work being carried out. The gross rate of pay includes the IN-SYNC margin that’s deducted before payment is made.

When do I receive my money?

You’re generally paid weekly (Friday) unless our contractor/recruitment agency requests otherwise.

Where can I see my payslips?

Payslips are uploaded to your secure LUNA account, which you’re set up with when you register with IN-SYNC.

Do I receive a P60?

Yes, all employees’ End of Year (EOY) figures will always be illustrated on a P60, which will be sent out shortly after the tax year and must be sent out before the 19th of May each tax year. 

Am I covered by personal accident insurance?

As an employee of IN-SYNC, you will be covered under our personal accident insurance. IN-SYNC has the right to change this policy at any time. Summary cover available on request.

What happens if I change to another client?

If you, the employee, are approached by another client, please ensure you inform IN-SYNC as soon as possible. We will then take the necessary steps to engage with the client.  If there is a change in the client or the site you are working on, you’ll be required to complete a new health and safety questionnaire to ensure there is an up-to-date safety assessment of your working environment.

To inform us of a change to the client, please contact our customer services team.

What if the client sends me paperwork to sign?

Should a client send you an updated contract directly, please ensure you forward this to [email protected].

What information do you need from me to register with IN-SYNC?

Registration with IN-SYNC is easy. We will just require the following: 

• Your limited company name, company number and company UTR. 
• Proof of your business bank account. 
• VAT registration (if applicable).

Will I be impacted by IR35?

IR35 is a tax legislation that aims to identify if a contractor is genuinely self-employed or is working as a disguised employee and therefore avoiding tax. It applies to contractors who provide services through a limited company.

If you are working via an agency and IN-SYNC is the intermediary, the agency and their end client will send us a status determination statement, which we are then bound to.

How do I submit my invoices, expenses and timesheets?

Timesheets and agreed expenses will need to be submitted to the agency or end client. They’ll send a schedule to IN-SYNC with the details of the payments, and we’ll then invoice the agency/client.

Will you let me know when I’ve been paid?

Yes. IN-SYNC will send you a text message when we’ve processed your payment with details about your payment date. We’ll also provide a self-billing invoice that will outline your gross earnings and deductions. This will be available to view and download in the IN-SYNC Luna portal.

Do I need to be VAT registered?

You can choose to register for VAT voluntarily at any time. However, you must register for VAT if:

• Your total VAT taxable turnover for the last 12 months was over £90,000 (the VAT threshold).
• You expect your turnover to go over £90,000 in the next 30 days​. 

Our tax specialists can help you register for VAT and secure backdated and ongoing refunds. Find out more here: https://insyncgroup.co.uk/services/by-service/vat-management/.

What National Insurance contribution do I need to pay?

If you’re the director of a limited company, you’ll need to pay National Insurance on annual income from salary and bonuses over £12,570. These contributions are worked out from your annual earnings and apply even if you’re the director of your own company and its only employee.

Check the government website for the most up-to-date guidance on NI contributions.

What do I need to complete my self-assessment?

Your private limited company must prepare a company tax return and full (‘statutory’) annual accounts at the end of the financial year. These will be necessary for meeting filing deadlines with Companies House and HMRC, as well as working out how much corporation tax you owe. Get in touch with our expert tax team to let them take care of this for you! 

What’s the Construction Industry Scheme (CIS)?

Under the Construction Industry Scheme (CIS), contractors deduct money from a subcontractor's payments and pass it to HM Revenue and Customs (HMRC). It’s a UK tax scheme to allow you to pay monies on account, ready for your end-of-year return. Subcontractors in the construction industry can register for CIS by calling the helpline 0300 200 3210.

Does CIS apply to me if I’m a limited company?

Yes. CIS applies to subcontractors and limited company contractors that offer services in the construction industry. See more about limited companies here.

How does it work with expenses?

If you’re claiming expenses, anything paid via IN-SYNC and/or our clients will incur CIS tax. Exceptions to this include purchasing materials or hired equipment if a receipt is provided.

What is DRC and how does it apply to me?

Domestic reverse charge (DRC) changes how VAT is handled for certain construction services. This legislation applies to transactions that are reported under the CIS.

If your CIS role falls within the DRC and you’re VAT registered, then IN-SYNC is obligated to account for VAT subject to the DRC rules. Therefore, payments we make to you will not include VAT and your self-bill will show how much VAT has been attributed to DRC, allowing you to submit your VAT return accordingly.

How much am I likely to be taxed under CIS?

This depends on the verification status of your UTR number. Usually, UTR numbers are verified at 20% for most subcontractors. Once you receive your UTR number, you should call HMRC to activate it and will then likely be deducted 20%. Without a UTR number, you’ll be verified at 30% until HMRC is happy that you have no outstanding issues. The difference between the 20% and 30% will be returned in your self-assessment.

There may be a situation where you’re eligible for a gross (0%) payment status, but this is dependent on meeting certain turnover, business and compliance tests.

Can you tell me more about gross payment status? 

To qualify for gross payment status, you’ll need to show HMRC that:

• You’ve paid your tax and National Insurance on time in the past. 

• Your business does construction work (or provides labour for it) in the UK. 

• Your business is run through a bank account. 

Your turnover for the last 12 months will then be reviewed. Not taking into account VAT and cost of materials, you need turnover figures of:

• £30,000 if you’re a sole trader. 

• £30,000 for each partner in a partnership, or at least £100,000 for the whole partnership. 

• £30,000 for each director of a limited company (or at least £100,000 for the whole company).

How much should I put aside for tax and National Insurance?

IN-SYNC can provide you with guidance and simple calculations showing how much to retain for your personal tax and National Insurance liabilities. It’s important to put enough aside each week as failure to pay your tax and NI liabilities can result in fines.

What expenses can I claim for and how do I claim these?

Any expenses you claim must have been incurred ‘wholly and exclusively’ for your work. Any expenses incurred that were only partially for business will be accounted for to the extent they were used for business purposes. Examples of business expenses include travel costs, work-specific clothing, tools and equipment, training costs, accountancy fees, insurance and advertising.

As a self-employed contractor, your expense claim will be made at the end of the tax year via the completion of a self-assessment. You must keep a record of all incurred expenses as well as accompanying receipts.

What do I need to complete my self-assessment?

To complete your self-assessment, you’ll need the following information:

• A record of all your business’ sales and expenditures, such as invoices and receipts.
• Information to declare any other income you may have, such as dividend income or property income.
• Disclosure of any payments you make into a pension scheme.
• Information of any benefits from any employment received throughout the year. 

Can IN-SYNC complete my self-assessment?

Yes. We’re competitively priced and will do all the hard work for you. Please call our experienced tax team on 01252 704 030, and they’ll explain the process.

How do I register as self-employed?

You’ll need to register for self-assessment. We can help you with this through our tax management service: https://insyncgroup.co.uk/services/by-service/tax-management/.

If you have an accountant or agent like IN-SYNC who’ll be acting on your behalf, you must complete a 64-8 form to authorise them to discuss your tax affairs with HMRC.

What National Insurance contributions do I need to pay?

You will pay:

• Class 2 National Insurance which is £3.15 a week, if you earn more than £6,725 a year.
• An additional 10.25% on profits between £9,881 and £50,270.
• 3.25% on profits over this amount.

Check the government website for the most up-to-date guidance on NI contributions. 

How do I know when I have been paid? 

IN-SYNC will send a text message to let you know your payment is on its way. You’ll also have access to our subcontractor portal, IN-SYNC Luna, which allows you to view your remittance advice once you’ve been paid. 

How do I get a copy of my statement of earnings?

Your statement of earnings will show all invoiced amounts and deductions from your contracted time with IN-SYNC and will be required to complete your self-assessment tax return. To receive your statement of earnings, please contact us at [email protected].

What happens with holiday pay entitlement?

Holiday pay is only applicable to workers and employees, not self-employed subcontractors. It’s advised that you look at your finances and plan for when you do take time off work, or if there are times when work is not available.

Does IN-SYNC withhold retention from my payments?

Typically, no. We will occasionally by client request, but you’ll be informed if this is the case at the time of registration.

Do I need to be VAT registered?

You can choose to register for VAT voluntarily at any time. However, you must register for VAT if:

• Your total VAT taxable turnover for the last 12 months was over £90,000 (the VAT threshold).
• You expect your turnover to go over £90,000 in the next 30 days​.

Our tax specialists can help you register for VAT and secure backdated and ongoing refunds. Find out more here: https://insyncgroup.co.uk/services/by-service/vat-management/.