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Payment Options

As a working locum or contractor there are a number of different ways in which we can pay you, please see payment guide below or asked one of our consultants for more information.

PAYE

Upon production of a time sheet, signed and authorised by your employer, we will pay you weekly, directly into your account. We are legally required to deduct the current rate of National Insurance and Tax contributions at source. Don't worry if you don't already have a Tax Code or National Insurance number - we'll guide you through the process making it as straight forward a possible.

With PAYE you accrue holiday pay and are eligible to statutory sick pay (SST).

PAYE Umbrella

This is where you ' the contractor' essentially become an employee of the umbrella company. You submit time-sheets to the umbrella who will in turn, invoice the end client (Mediplacements) for the work done by you. You will then be paid as a PAYE employee less the umbrella fee.

You will usually be allowed to claim some basic expenses, however be cautious of umbrella companies advertising 'special' dispensations or expense policies 'approved by' the Inland Revenue, that claim to allow expense claims without the need to produce or retain receipts.

You'll typically take home around 60% - 65% of your contract by working through an umbrella company.

Payrates are generally higher than PAYE, but holiday pay and SST are not payable via your recruitment agency.

Mediplacements can provide details of HMRC complaint companies who provide this service.

Limited Company

It is very important to stress that these must be genuine, one person limited company and not part of a contractor service company.

You, the contractor will need to form a limited company and open a business bank account (your accountant will help you with this). The director controls invoicing, the company bank account and decides on how much to pay themselves, which is made up of a combination of salary and dividends.

The limited company's contract can either be with the end client or the agency and the company can claim as tax free expenses: travel and subsistence, hardware and software, training, professional subscriptions, business telephone, accountancy fees plus any other business costs.

You'll typically take home around 75% - 80% of your contract pay by working through your own limited company.