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Will I be engaged as a limited company contractor or a temporary worker (PAYE)?

We facilitate both engagement types, and can provide further information on how both options work for you.

It is the hiring entity (the Client) who determines whether the engagement is offered on a PAYE (inside IR35) or Limited Company (outside IR35) basis.

PAYE Contract means you are essentially a temporary worker at Freshminds. We deduct standard payroll taxes at source (Income Tax and Employees' National Insurance contributions), and we pay your Employer's National Insurance contribution. You are entitled to accrued holiday pay. The day rate you earn will be taxed by HMRC dependent on your individual circumstances.

Under a Limited Company Contract you operate as an independent business, and are paid a gross fee. You are responsible for your own tax.

How do I set myself up as a limited company contractor?

There are a few simple steps to setting up a limited company. One way to do this easily is to go through the process online. Please see the following gov.uk webpage for more guidance: https://www.gov.uk/set-up-limited-company

The documents that you need to work under a limited company through Freshminds are these:

  • Your limited company address

  • Proof of professional indemnity insurance up to the value of £1 million

  • A copy of your certificate of incorporation

  • Proof of your right to work in the UK

Does the choice of PAYE or Limited Company affect the projects I can do?

Yes. If you choose to only operate through your own Limited Company, you will not be eligibe to accept assignments that have been determined by the client to fall inside IR35.

It is the hiring entity (the Client) who is responsible for determining whether a piece of work falls inside or outside IR35.

How does IR35 legislation impact my limited company status?

IR35 legislation does not impact your ability to set up or operate a Limited Company (also referred to as a Personal Services Company, or PSC). However, under the current legislation, any work that has been determined by the hiring entity (the Client) as falling "inside" IR35 must have full payroll tax deductions made at source. This usually makes engaging via a limited company for work deemed inside IR35 impractical.

Is there a different contract for each project?

You will have a single contractual agreement with Freshminds, which sets out how we work together and each of our commitments and obligations. Each individual project is delivered under a separate assignment schedule, which sets out the specific terms for that project.

The ensures that things like your day rate, project dates and durations can be adapted for individual projects.

Can I work under a PAYE contract and then set up a Limited Company contract later?

Yes. It's possible to set up a Limited Company contract after you have begun a project or in between projects with us.

You should always consult HMRC and/or a qualified financial advisor for more guidance on your specific circumstances. Freshminds does not provide financial or tax advice and is not qualified to do so.

Can I include the names of clients on my CV?

The work carried out through Freshminds is strictly confidential, so you are not permitted to use clients’ names in any public documents or conversations unless express permission is given by the client

Can I contract with other employers if I sign a contract with Freshminds?

Yes. The contract you sign is non-exclusive, so you may work with other employers, clients, or recruiters. However, while you are on a project with Freshminds, we ask that you are fully committed to the work you have agreed to carry out.

Will I be able to get Visa sponsorship as a contractor?

Unfortunately we are not able to provide sponsorship for a Visa if you are a contractor. You will be able to contract with Freshminds on certain visas.

What are my contracted hours?

For a PAYE contractor, unless stated otherwise by the client, the standard working hours you are contracted to work are 9am-7pm during the week. When we reach out to you about a project, we will know the likely working hours. When you contract as a limited company, the working hours will vary from project to project and we will be able to give you an idea of the hours on an individual basis.

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