Limited Company/ Uplifted / Gross Pay / Net Pay/ PAYE
Limited companies in the NHS temporary workforce are a thing of the past (and come April, the temporary workforce in private sectors too), so why are all agencies still advertising ‘limited’ or ‘uplifted’ rates.
One of the main reasons for this is because when an agency pays your nominated umbrella company, it is the same uplifted rate they would have sent to a Limited Company in the past where there was no ‘deemed’ employer.
When you are paid via an umbrella company, the contracts in place deem the umbrella as the employer, and you as the employee. Therefore, employer’s national insurance and other such costs become payable.
The reality is, in ALL cases, this is not the actual rate you achieve as a locum. It is an uplifted rate that is built up from your PAYE rate and includes all of the following;
- ENIC (employer’s national insurance contribution)
- Employer Pension Contributions (if opted in)
- Holiday Pay
- Apprenticeship Levy (if applicable)
- Umbrella Margin (the fee for processing your timesheet and payment)
- Employee National Insurance Contributions
- Employee Tax
- Student Loan (if applicable)
There is no other area of work whereby you as an employee are told that your income is inclusive of employer costs, yet in the agency world, especially the medical agency world, you are deemed to be an employee (whether contractually though the agency or through the umbrella or even through direct engagement), and yet are sold pay rates that are built up of all of these employer costs as well.
Here at QualityLS we are leading the way in the market and making sure that you, as a locum worker, have the real information you need. Not a made-up rate that sells you a dream of an unrealistic take home. A real, honest, actual hourly rate that you would achieve subject only to your own NI contribution, tax and student loan (where applicable).
On top of that, working with Quality Locums will mean you no longer have to pay an umbrella fee to get paid. What you see is what you get. We will cover the cost of making sure your money lands into your account with no hassle, and we will ensure your deductions are passed to the HMRC in a compliant and timely manner. No more worrying about whether or not you will be landed with a tax bill because of any non-compliant handling of your hard-earnt money. Just an agency you can trust and depend upon.
If you want any more information about PAYE rates, please get in touch and speak to our expert adviser.