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Umbrella Solutions and PAYE Documents

Umbrella Companies take care of pretty much all administration associated with a contract assignment. This means on a day to day basis all you have to worry about is sending timesheets and making expense claims. There are however a few documents that you should be aware of when joining or leaving an umbrella company. These are detailed below. To find out about Commonwealth Contractors Umbrella Company solutions such as Expat Advantage and Payroll Umbrella call now on 0800 294 4388 or Submit your details and we will get right back to you.

P45

A P45 is a summary of the total gross salary paid to an employee together with the amount of income tax deducted from the start of the tax year to the point the employee left the company. If you have worked before in the tax year it is really important that you get a P45 from your previous employer as soon as possible. The P45 allows your new employer to ensure that the correct tax code is used and that the correct amount of tax is paid. If you do not provide a P45 you could be put on an emergency tax code which will often involve higher PAYE deductions that otherwise would be needed. The previous employer is obliged to give the departing employee a P45 within 30 days of the final pay day. When you leave an umbrella company you receive a P45.

P46

A P46 is completed where a new employee is unable to provide a P45 from their previous employer. Once completed the employer sends the P46 to the HM Revenue and Customs to work out the appropriate tax code. In the meantime a temporary tax code is used.

P60

A P60 is a summary of all income received and tax paid during the tax year. You receive a P60 if you are employed at the end of the tax year i.e. 5th April.

P11D

A P11D details benefits in kind paid to employees with salaries in excess of £8,500 per annum and company directors. The employer completes the P11D and sends a copy to the HM Revenue and Customs by the 6th July each year.

P86

A P86 is normally completed by a person who has arrived in the UK. The form helps to establish a person’s tax residence, non-resident tax status and their domicile in the UK.

P85

A P85 is the opposite of a P86. The form is a notice to the HM Revenue and Customs that you are leaving the UK. If you are an expat returning to your home country for an extended period of time you should complete a P85

To find out more about our umbrella company solutions call now on 0800 294 4388 or submit your details and we will get right back to you

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