Contracting with Software Personnel International
At Software Personnel International our purpose is to find you the contract you desire and offer you the best rates, expert advice and market insights relevant to your expertise. This allows you to make an informed decision and gain a competitive position to secure your next contract.
Our dedicated contract team take a methodical approach to ensure your contract is easy to understand and there is a smooth transition into your new work environment. If you accept an assignment or Discrete Project, our Contractor Care team will support you all the way, providing contractual advice, explain the on-boarding process, invoicing and answer any questions.
In line with the Off Payroll Rules that are effective from 6th April 2021, we will assist in a collaborative way (between you, ourselves and the Client) to ensure the correct Status Determination Statement (SDS) is made to reflect the actual project arrangements. The SDS, together with our robust Personal Service Company (PSC) Agreements will in most instances capture a genuine project outside of "IR35".
Moreover, with over 30 years experience within the IT Contract sector we are often the 'preferred supplier' for contractors with may organisations who entrust us with the entire recruiting process including IR35 determination issues.
As a Contractor with Software Personnel, you’ll be providing a 'Contract for Services' and have the choice of three contract methods:
- Set yourself up as a PSC / UK limited company and ensure you’re listed as the Director and are in sole financial control of the company.
- Join our 'Temporary Candidate Agreement' (PAYE) and get paid a net salary with payslip. We deduct your income tax, national insurance and pension contributions. This also includes our Pension contribution and holiday pay. (This is a free service and do not charge any administration fee)
- Enter into an agreement with one of our approved 'Umbrella companies' who must always adhere to our 'Agency to Service Provider' agreements.
Contracting or freelancing via your own UK Limited Company. For genuine discrete projects, this offers greater flexibility and additional tax benefits but also means you take greater responsibility for your legal status and accounts. You will become the main Representative for your Contractor PSC who performs the services for the End Client. This will be over a 'Project Term' and is based upon a negotiated 'Project Fee' to complete the Project. Invoices can be raised during the Project, more often on a monthly basis and are paid to 10-day payment terms.
By joining an umbrella company, you’re usually taken on as an employee where you can gain employment rights and minimise your administrative tasks or with payments treated as an employment income. This is ideal for those who work on short-term projects or on a series of short assignments and incur business expenses during their work.
The vast majority of Limited Company Contractors will have some form of contractor insurance, professional indemnity or liability insurance. For projects where you are operating under the Off Payroll Rules, purchasing insurance is a key indicator that you are being in business on your own account. All contractors in business today need to be proactive and show that they have taken reasonable steps to understand the Off Payroll Rules (often called "IR35") and ascertain their status accordingly. An IR35 Contract Review demonstrates to HMRC exactly that, and is a key indicator in helping to prove your status.
We can provide guidance to one of our chosen partners who offer competitive premiums for their insurances, most of which include a free IR35 contract review/assessment along with IR35 Insurances.