FAQ
At Branch Services, we understand that payroll and compliance can be complex. To help you make informed decisions, we’ve answered some of the most common questions about our payroll solutions. Whether you’re a contractor, agency, or employer, our FAQs provide clear and concise information to guide you.
CIS FAQ's
1. How does CIS payroll work through a payroll company?
When you register with Branch Services for CIS payroll, we verify your Unique Taxpayer Reference (UTR) with HMRC and deduct 20% (registered) or 30% (unverified) tax from your payments. We ensure compliance with HMRC regulations, process your payments efficiently, and provide clear documentation for your records.
2. Am I still self-employed under the CIS scheme?
Yes, under CIS, you remain self-employed and are responsible for filing a Self-Assessment tax return each year. You must also pay your Class 2 National Insurance contributions directly to HMRC.
3. Do I receive employment benefits such as holiday pay or sick pay?
No, as a self-employed subcontractor, you are engaged under a contract for services, meaning you do not receive employment benefits such as holiday pay, Statutory Sick Pay (SSP), or pension contributions.
4. How often will I be paid?
Your payments are typically processed on a weekly basis (every Friday), but this depends on instructions from your agency or client. Payments are subject to correct timesheet submission and approval.
5. What should I do if I believe my employment status is incorrect?
If you believe you should be classified as an employee rather than self-employed, notify your agency, client, and Branch Services immediately so the correct employment model can be assessed in line with HMRC guidelines on Supervision, Direction, and Control (SDC).
PAYE/PEO FAQ's
1. How is PAYE different from an umbrella company?
Under PAYE, you are an employee of Branch Services, receiving full statutory benefits and employment rights, while umbrella companies act as intermediaries between contractors and end clients.
2. Will I still get holiday and sick pay under PAYE?
Yes, as a PAYE employee, you are entitled to statutory holiday pay, sick pay, and other employment benefits.
3. Do I need to complete a self-assessment tax return?
No, under our PAYE model, all tax and NI deductions are handled at source, eliminating the need for self-assessments.
4. How does PAYE affect my IR35 status?
By being an employee under our PAYE model, IR35 does not apply to you, removing any risk of non-compliance.
5. How frequently will I be paid?
Payments are made weekly or monthly, depending on your contractual arrangement and agreement with the agency or employer.
UMBRELLA FAQ's
1. What is an umbrella company and how does it work?
An umbrella company acts as an employer for contractors, handling payroll, tax, and compliance while allowing workers to take on multiple contracts. You submit timesheets, and we take care of deductions before paying you a net salary.
2. Will I be taxed more under an umbrella scheme?
No, all tax and National Insurance deductions are handled according to HMRC guidelines, ensuring you pay the correct amount without any hidden fees or additional tax burdens.
3. How do I get paid through an umbrella company?
Once you submit your timesheets, we process your payroll by deducting tax, NI, and any necessary contributions. Your net salary is then transferred directly to your bank account on a weekly or monthly basis.
4. Can I claim expenses while working under an umbrella company?
Due to HMRC regulations, most contractors cannot claim expenses unless they meet specific criteria, such as working at multiple temporary sites. We can provide guidance on what expenses may be allowable.
5. Is an umbrella scheme right for me?
If you want the benefits of employment, such as holiday pay, sick pay, and hassle-free tax management, while still enjoying the flexibility of contracting, an umbrella scheme could be the ideal choice for you.
