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What is self employed payroll?

Self employed payroll refers to the process through which individuals who work for themselves handle the calculation and distribution of their own pay. Unlike traditional employment where an employer manages payroll, self employed individuals take on the responsibility of managing their finances such as taxes, deductions, and salary disbursement.

However, we get that employment status and contractor tax can be complicated. So, our experienced team guide contractors through the process; ensuring that they’re engaged in the most appropriate and beneficial manner for their current assignment. 

As a self employed contractor, you will always be engaged on a contract for service however, there are a number of ways in which you could be taxed. For example, if you fall under the Construction Industry Scheme, you would be subject to the 20% tax deduction to HMRC in line with the Construction Industry Scheme rules.

One of our qualified team members will ensure that you are on the correct tax method for your current assignment.

Have a question?

Our team are on hand to support. You can contact us via WhatsApp or by calling 01923 690910.

Alternatively, you can request a callback by completing our short form:

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How it works

  1. Your agency place you on a temporary assignment with your end client
  2. If you would like to provide your services as a self employed individual, our team will undertake Supervision, Direction and control questionnaires with both yourself and your client, to determine which payment method is best for you. Irrespective of the sector with which you supply your services to, if you are subject to a level of Supervision, Direction or Control, your income will have to be subject to Pay As You Earn. 
  3. You submit your hours and expenses (if eligible)
  4. Bar2 raise an invoice to your agency
  5. Your client sends payment to us
  6. Your payment is processed in the most tax-efficient way.
  7. 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.
  8. Payments are sent to your nominated bank account. You will receive text message confirmation of your payment.
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Benefits of working through an umbrella

Working through an umbrella company comes with a host of advantages for self employed contractors:

Guaranteed peace of mind

We ensure that all the deductions for self employment tax such as income tax, 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. 

Reduced admin

We handle all administrative tasks, including payroll processing, tax deductions, and invoicing, minimising the administrative workload for contractors.

Tax efficient payments

Umbrella payroll companies ensure that you’re paid in the most tax-efficient way, whilst ensuring compliance with tax regulations.

Professional guidance

We offer professional support and guidance, keeping contractors informed about changes in tax laws and ensuring adherence to compliance standards.

Benefits of Bar2 self employed

  • We’ll ensure that you maintain your self employed status whilst protecting the benefits that come with this
  • 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
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