Temporary, Interim, Contract...
For employers, utilising temporary or contract professionals ensures they have the right talent on board at the right time, but how does it work for you?
It gives you the opportunity to experience different industries, new technology, a variety of roles and take control of your working schedule to support you in all the other things you do when you’re not working, like being a parent, travelling the world, supporting your community or simply finding time to do all those things that never get done.
Most temporary and contract roles are full time (i.e. 5 days per week), but for a defined period of time. They vary from being an integral part of a major commercial project to supporting a business during busy periods or when they have an unexpected staff absence.
You will need to have the right to work in the UK and be able to verify that by presenting your passport or the original documentation highlighting the appropriate visa.
Many professionals (and employers) see temporary and contract work as an ideal opportunity to get themselves in front of a potential permanent employer who can assess them ‘at work’ and build relationships which may lead to a more long-term engagement.
Temporary workers are usually paid on a PAYE basis by submitting a record of the hours they have worked (timesheet) and provided it is approved, will have funds transferred to their bank account a week later. Wade Macdonald look after the deduction and payment of tax and employers’ National Insurance on your behalf and you will accrue holiday just like a permanent employee.
Temporary workers are protected by the Agency Workers Regulations which ensure if they are doing a directly comparable role to a permanent member of staff then they will be entitled to the equivalent rate of pay and a number of the same benefits including holiday pay and access to employee facilities.
Regulated PAYE ‘Umbrella Companies’ are also an option for temporary workers and further information can be found at www.fcsa.org.uk.
Contractors are usually engaged on projects or slightly more ‘senior’ levels of work and generally operate via a Personal Services Company (PSC) where they take responsibility for their own tax and National Insurance. This style of self-employment is strictly regulated by HMRC and contractors should familiarise themselves with IR35 regulations to ensure they are compliant on each and every assignment.
Contractors should be aware that you can validate your self-employment status if working in a Public Sector organisation by using HMRC’s online Employment Status Check https://www.tax.service.gov.uk/check-employment-status-for-tax
Wade Macdonald are happy to work with contractors who are genuinely self-employed and are able to provide the relevant supporting documentation, including certificates of company incorporation, proof of VAT registration, company bank account information and Professional Indemnity Insurance certificates. You will need to submit an itemised invoice for your services and once approved we will process and pay it.
It is always advisable for contractors working via a PSC to seek advice from a reputable accountant and/or consult with the range of information available including HMRC https://www.gov.uk/working-for-yourself.