FAQ
IR35 is government legislation relating to intermediaries that was introduced into the Finance Act 2000 on April 6, 2020 (delayed until 2021 for the private sector). It was enacted to prevent contractors from avoiding taxes and national insurance by using intermediaries such as Personal Service Companies or Partnerships. Historically, people saved on National Insurance contributions by receiving “wages” in the form of dividends. IR35 ensures you pay tax like you would if you were employed rather than a contractor.
Agencies and businesses that use contractors are hesitant to pay you unless they receive a valid tax invoice. This is because if they are found to have paid someone who should have been an employee, they may face penalties for the PAYE and National Insurance payments you would have made if you had been an employee. As a result, you must either establish your own Limited Company or join an umbrella scheme (which clarifies your employment status). By joining VitalEdge, you become an employee of an umbrella, which clarifies your status.
Joining is very simple and from application to live can take as little as 72 hours. However, we are experiencing significant volume at the moment, so please allow additional time. You can complete the application form here Apply to Join
As an umbrella employee you may be able to claim allowable expenses whilst working on a temporary site. The range of legitimate expenses can include things like travel, meal costs while travelling between locations, as well as hotel bills for when you are working away.
VitalEdge have the tools that enable us to give an estimated take home pay. We can consider your personal circumstances such at tax code, student loans, pension etc. These estimates can be useful when comparing contract roles against permanent roles.
There are many umbrella companies in the marketplace. All should be using the same compliant tax system; therefore, your estimated take home pay should not differ between umbrella companies. The only difference should be the margin they take
Joining VitalEdge Solutions is simple. Click on the “Join Now” button on our homepage, and our team will guide you through the onboarding process.
No. As VitalEdge will become your employer, we will engage with your end client/agency to receive your funds directly from them. We will forward on our compliance pack to them, detailing our services and insurance documents
As an employee of VitalEdge, IR35 is no longer an issue as IR35 relates to contractors with Personal Service Companies. Now that you are paid “via “ VitalEdge you will be subject to PAYE
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