What is a limited company?
A Limited Company also known as a ‘Personal Services Company (PSC) is typically a company formed and used by either an individual or a small group of individuals such as contractors, consultants or self-employed workers. The PSC will provide their professional services to an end client or agency which has the following benefits:
Contractor – tax efficient payments via salary and dividends in turn helping contractors to remain competitive in the contracting market
End clients/agencies – reduced risk of contract for services and employment tribunals direct with the contractor (as the PSC is engaged or an intermediary involved) adding another chain into the supply
What we do for limited company contractors
If you already have your own limited company but prefer the security of trading via a staffing business, Bar2 can help. By invoicing your client on your behalf, we will ensure that administrative tasks do not delay your payments, as well as correctly identifying whether your current assignment is within IR35. We will give you the peace of mind that you are fully compliant.
How it works
- Your agency place you on a temporary assignment with your end client
- If you would like to provide your services as a limited company we would need to complete a Supervision, Direction and Control questionnaire or liaise with your client and agency directly to confirm your IR35 status.
- You submit your hours and expenses (if eligible)
- Bar2 raise an invoice to your agency
- Your client sends payment to us
- Your payment is processed in the most tax-efficient way.
- Depending on the sector that you supply your services to, we may have to apply a percentage deduction to your income and remit that to HMRC. All services supplied to the construction industry are subject to their own tax treatment. If you are not supplying services to the construction industry, you will be responsible for paying your contractor taxes to HMRC when it is due.
- Payments are sent to your nominated bank account. You will receive text message confirmation of your payment.
Benefits of working through an umbrella
Working through an umbrella company comes with a host of advantages for limited companies:
Guaranteed peace of mind
We ensure that all deductions are managed our end.
Easy and simple processes
Not only will we cover all aspects of your payroll, but the processes on your side are kept simple and hassle-free.
We handle all administrative tasks, including payroll processing, tax deductions, and invoicing, minimising the administrative workload.
Tax efficient payments
Umbrella payroll companies ensure that you’re paid in the most tax-efficient way, whilst ensuring compliance with tax regulations.
We offer professional support and guidance, keeping contractors informed about changes in tax laws and ensuring adherence to compliance standards.
Benefits of Bar2 limited payroll
- We use state-of-the-art technology to register our contractors one-time only
- Our systems can verify your contractor tax status in minutes
- We support all of our contractors post-registration, by handling all of your day-to-day admin
- By handing us the ropes, we provide you with peace of mind
- Contractor portal to hold remittances
- We work in partnership with a leading accounts product to ensure you are always paid in a timely and accurate manner
- Use with multiple clients
- Raising of invoices
- Multi-lingual support team
- Text message confirmation for payments
- We offer Public Liability Insurance to protect you whilst on site