SOME IMPORTANT NOTES
Payments to contract workers are paid on the same day we receive cleared funds from the agency before 3:00pm (UK time). ALL payments are made as priority payments and should clear in the receiving bank account on the same day the payment was made. This however cannot be guaranteed by Priority Accounts Limited as it is the responsibility of the receiving banks to ensure the processing and clearing of funds.
Priority Accounts Limited IS an accountancy organisation offering a service enabling agents to engage with self-employed contract workers as limited company entities.
Priority Accounts Limited IS NOT a recruitment agency, nor is it associated in any way with any particular recruitment agency.
Priority Accounts Limited IS NOT a Composite Company or Managed Service Company (MSC) and functions only as an intermediary limited company. Contract workers are not issued shares, do not receive dividends and do not avoid paying National Insurance Contributions.
It is a known misconception by some agents that they may be in breach of UK legislation when dealing with limited companies registered outside of the United Kingdom. The Managed Service Company (MSC) legislation (April 2007) and the 3rd Party Debt Transference legislation (effective from Jan 2008) are not affected by the use of such service providers. These legislations affect only when it is found that the individual or their agents are knowingly evading the disclosure of taxes due. As contract workers using Priority Accounts Limited have to disclose that they are registered self-employed to the tax officials of their resident jurisdiction, both the agent and Priority Accounts Limited are seen to be conforming to the respective legislation.
Agencies using the services of Priority Accounts Limited understand that we are not a Managed Service Company (MSC) and know that there will be no risk of 3rd party debt transferral. The recent legislation in the UK, targets companies who provide schemes allowing for contract workers to evade paying tax.
During their due diligence process, agencies will receive the Certificate of Incorporation and company bank details of Priority Accounts Limited to conform to regulations.
Contract workers are self-employed individuals who legitimately pay their own taxes within the jurisdiction to which they are resident. Being self-employed adds major benefits to their tax affairs. In the UK, self-employed contract workers pay Class 2 National Insurance contributions which is extremely low, there is no liability for Employer National Insurance contributions.
Contract workers are taxed on income completely differently from an employee or a member of a limited company. Declared to the tax officials of their resident jurisdiction on an annual self-assessment basis, their income, for tax purposes, is the difference between total income less legitimate business expenses.
Contract workers must manage their own work related expenses and must keep all documents safe so that they may be used with their self-assessment for tax.
Regardless of the contract status, IR35 regulations do not apply as long as the contract worker is not seen to be receiving any employee related benefits from the client.
There is no contract between Priority Accounts and it clients. There are no joining or leaving fees and there is no minimum time to which a client is required to use the service, unless used as part of the referral scheme.