Limited company contractors

We hope you find this information useful.

Should you be contracted with Crone Corkill via a Limited Company, you will be given a Limited Company Supplier Agreement. A Schedule of Services will accompany the Agreement, detailing the contract.

Limited company contractors and tax compliance

The Government has stringent anti-tax avoidance legislation for those working through their own Limited Company. You need to provide proof of the following:

Your Limited Company is registered in the UK
You are the Director and majority shareholder of the company
The company’s bank account is in the UK. Please note the Isle of Man is not under UK jurisdiction
You are sufficiently insured for the duration of the assignment

Frequently Asked Questions about Limited company contractors

IR35 – public sector

IR35 is HMRC legislation designed to prevent tax avoidance by contractors who are supplying their services to clients via an intermediary (i.e. an agency). If an assignment is deemed Inside IR35, the agency must deduct PAYE and NI tax at source prior to paying your limited company. If an assignment is deemed Outside IR35, the agency will process a gross payment to your limited company and the limited company will remain responsible for tax deductions.

Since 6th April 2021, your IR35 status is determined by the end client. We will advise you if the role is Inside or Outside of IR35 when discussing an assignment.
IR35 rules are already in place for those working in a Public Sector organisation.
Visit the below government pages for more information :

Setting up a limited company

Crone Corkill is not qualified to provide financial or practical advice if you’re looking to set up a Limited Company, so we recommend you seek independent advice. We require a minimum of two weeks’ notice in writing if you wish to amend your Limited Company details. When communicating this, please email your consultant and copy in the Payroll Team at [email protected].

Payment

As a Limited Company Contractor, we will work with you under a self-bill agreement. This means that you will not have to raise invoices.
Crone Corkill will issue a Limited Company Remittance advice, and this will act as the invoice. Payment will be made upon receipt of authorised timesheets and paid weekly in arrears. Please note that timesheets must be submitted by 5pm Monday following the week worked to ensure payment can be released on the Friday.

Tax Deductions

Please also note that all payments to Limited Company Suppliers who are Outside IR35 will be inclusive of tax and NI contributions. It is the Limited Company Supplier’s responsibility to ensure these are paid to HMRC on time. Crone Corkill does not offer tax advice, nor take responsibility for any Limited Company Supplier’s failure to pay their tax commitments on time.

Required documents

Crone Corkill must be in receipt of the following documents prior to the start date of an assignment:

Original passport and/or the relevant residence permit/visa as proof of your right to work in the UK
References to cover the last three to five years
Certificate of Incorporation, issued by the Registrar of Companies (the date of incorporation must be prior to the date of assignment commencement)
Company Bank Account details (this must match the information on your Certificate of Incorporation)
A signed Limited Company Supplier Agreement
VAT Registration Certificate
Certificate of Professional Indemnity Insurance for £1,000,000

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