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Working as a Contractor
Home > advice > advice details

WORKING AS A LIMITED COMPANY

In this brief guide, we tell you most things you will need to know about working as a freelance contractor with Proem IT Recruitment.

Contractors usually set themselves up as a Limited Company in order to operate as a self employed freelancer. This means you are offering your services to an employer like any company and you will then charge for your services, pay your own VAT, National Insurance and keep your own records.

However, many freelancers choose to work through an umbrella company which provides most of the advantages of working on a Limited Company basis, but removes most of the administrative and legal obligations which go with operating your own Limited Company.

What do I need to do to get started?

Simply call us and submit your CV. A consultant at Proem IT Recruitment will be happy to assist in getting you started and send out a welcome pack for the start of your first assignment.

However, in order for the process to run smoothly and to ensure you are paid on time we need to receive a number of things from you.

list bullet

A copy of your certificate of incorporation if you are registered as a Limited Company

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A copy of your VAT registration certificate (where applicable)

list bullet A paying in slip to confirm your company bank details. Please note that we can only pay Limited Companies through their company bank account.
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Contract signed on behalf of the Limited Company through which you supply your services via Proem IT Recruitment as your agent.

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A photocopy of your passport to assure compliance with current UK work regulations.

list bullet Opt-out Notice if opted-out

 

What do I do when starting an assignment?

Your consultant at Proem IT Recruitment will make sure that you know the following for when you commence your assignment:

list bullet Where to report
list bullet How to get there
list bullet Who to report to
list bullet What time you should arrive

But please call if you are unsure about anything.

 

What is a timesheet?

When you start work as a paid Contractor at Proem IT Recruitment, in order to process payment for you, we need to be in receipt of a signed timesheet by for the previous weeks work. The Timesheet is filled out by you, indicating the amount of hours you have worked for the particular employer and then you obtain the signature of the person to whom you report into and fax or post the timesheet to us by a set deadline each week following the week. Each new week our contracting team will send out a new timesheet to you.

Here at Proem IT Recruitment, timesheets should be submitted by 3.00pm every Monday via fax on 01565 624011 or posted to arrive on Monday. If you require a new timesheet please email our team on timesheet@proem-it.com

 

Why do I need a VAT invoice?

VAT is paid on receipt of a VAT invoice. We require a VAT invoice every week together with your completed timesheet. Please be aware that legally we cannot pay you without a completed timesheet together with a matching VAT invoice.

Am I entitled to holiday pay?

As a Limited Company you are responsible for your own holiday pay arrangements.

 

Do I need Employers Liability Insurance?

The Employers' Liability ( Compulsory Insurance ) Act 1969 makes it compulsory for every Employer carrying out business in Great Britain to insure against legal liability for bodily injury or disease sustained by employees arising out of, and in the course of, their employment in Great Britain. A certificate of employers' liability insurance must be displayed at each place of business
source: www.businesslink.gee.co.uk

With the increase of IR35 friendly contracts, many of our Clients are insisting on evidence of such indemnities. Having such protection will prove to your Clients that you are professional in your approach.

Many Contractors disagree with the need to have this (since they would be claiming against themselves in such an event) but this is now a legal requirement and must be complied with. Without it, you are at risk of being fined up to £5000.00.

If you have further queries regarding this, please do not hesitate to contact us and we can send you the relevant information.

 

Do I need Public Liability Insurance?

Although this is not a legal requirement, it is considered essential that an employer should have it. Basically it protects your legal liability against claims for injury or illness brought by employees.

We regard this as being essential when you utilise Clause 2 on the Employment Schedule regarding the “right to substitution”, where you, as a Limited Company can substitute yourself with another Contractor if the need arises (ie to cover your own holiday or sickness)

Again it proves that you are a legitimate Limited Company, making you IR35 friendly.

 

What if I decide to look for Permanent Work?

Proem IT Recruitment offer permanent placements as well as contracting, and they will be happy to assist your search for a permanent career.

Most clients will be reasonably flexible if you need to attend an interview in working hours (you will not be paid for this, of course), but you should provide as much notice as possible and try not to be absent at a critical time.

If you have any further questions please call our team on 01565 624010 or email us your CV to cv@proem-it.com

 

CONTACT INFORMATION

Contractor Payroll Dept

Contractor Payroll Dept
Proem IT Recruitment
Mere House
61a King Street
Knutsford
Cheshire

WA16 6DX

Contact Julia Barnes

Tel 01565 624010
Timesheet Fax 01565 624011
Email cv@proem-it.com

 

Proem IT Recruitment Freelance Team

Julia Barnes 01565 624010 julia.barnes@proem-it.com

Ronnie Ball 01565 624010 ronnie.ball@proem-it.com

Antonia Thornton 01565 624010 antonia.thornton@proem-it.com

Duncan Bradley 01565 624010 duncan.bradley@proem-it.com

 

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Proem IT Recruitment : Call Knutsford: 01565 624010 (North & Midlands) Bracknell: 01344 742820 (South) or email us at cv@proem-it.com
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