Question 1

Explaining your Clipper PAYE payslip

Accepted Answer

Here is an explanation of your payslip that you receive from us.

We receive the contract sum (Company Receipts) from your recruitment agency.
Our employment costs (Company Deductions) are then paid from the Company Receipts (If you have opted to have your holiday pay accrued this will also be shown in the Company Deductions).
What remains is your gross pay or taxable pay (Employee Payments) – this is split into Basic Pay (hours worked at the minimum wage) plus additional pay (anything else owed above minimum wage).
From your gross pay we deduct your personal tax and national insurance.
This then leaves your net pay or your take home pay. This is the amount that will clear into your bank.

Question 2

Registering for CIS (Construction Industry Scheme)

Accepted Answer

Should you operate on a self-employed basis in the construction industry, you will likely need to register for the Construction Industry Scheme (CIS). Under this scheme, we will deduct 20% as a flat rate from your payments and pass this to HMRC. Should you fail to register, we may need to deduct this at a rate of 30%.

If you have not already done so, you will first need to register for self-assessment with HMRC and apply for a UTR number. Our article explains how you can do this.

You can register for CIS on the Government Gateway, using your Government Gateway ID and password that you used when you registered for self-assessment (or another government service).

Question 3

Applying for a UTR number for self-assessment

Accepted Answer

Should you wish to engage on a self-employed basis, you will need to register with HMRC for self-assessment. This process is essentially you self-declaring to HMRC, that you will be engaging this way.

In doing so, HMRC will issue you a a 'Unique Tax Reference' (UTR) number. This is your unique code that you will use in correspondence with HMRC as well as when you submit your self-assessment tax return.

You can register on the government website here: https://www.gov.uk/register-for-self-assessment

You must register for Self Assessment by 5 October if you need to complete a Self Assessment tax return and have not sent one before. You could be fined if you do not.

Should you be operating in the construction industry, you may also need to register for the Construction Industry Scheme (CIS). Our article explains how you can do this.

Question 4

Generating a share code

Accepted Answer

As the Home Office digitises its Visa system, many immigration checks on an individual's Right to Work (RTW) in the UK can be done online. For foreign nationals with a visa granting them the right to work in the UK, you can prove your immigration status by providing us with a 'Share Code'. We can use this, along with other personal data, to verify your RTW.

To generate a share code, you can click the link below and follow the Home Office instructions:

https://www.gov.uk/view-prove-immigration-status

Question 5

Your Tax code

Accepted Answer

Every person in the UK gets a set amount of money per financial year for which they pay no tax and NI on. This is known as the tax free allowance. Above this amount, people will pay the relevant tax and national insurance.

For example, in the tax year/financial year 2023/2024, every UK resident had £12,570 as their tax free allowance. This is translated into a tax code, in this case 1257L (£10,500 would be 1050L and so on). This would become a standard tax code for that financial year. It allows payroll software and employers to ensure the correct tax free allowance is applied each week (£12,570 broken down over 52 weeks so £241) to their employees – whilst self-employed workers have a tax free allowance, this is calculated through their tax return.

Some workers’ tax code may be altered by HMRC if they owe or are owed tax. For instance, based on the example above, if a tax code was 900L, it would suggest they have a tax free allowance of only £9000 for the year and that in fact they owe HMRC tax. Occasionally, HMRC will issue a K tax code, for example K450, which means they owe a lot of tax and are paying it on more than their income. In this example, they pay tax on £4500 per year more than they earn.

If an employee has more than one job or is claiming a pension, then they will likely be on a BR (basic rate tax code). This allows one employer to provide the tax free allowance and ensure the second employer (or pension provider) doesn’t allow a second amount of tax fre

Question 6

Clipper CIS

Accepted Answer

Clipper CIS is for skilled workers that are operating within the Construction Industry Scheme that do not work under supervision, direction and control in the manner in which they carry out their work. We work closely with the recruitment agency to ensure only genuinely self-employed workers not under SDC (Supervision, Direction and Control) are engaged this way.

Clipper CIS is for workers that are genuinely self-employed and complete a self assessment tax return at the end of the financial year, provide their own PPE and tools and manage their own expenses.

In order to engage as CIS you would have a UTR (Unique Tax Reference) number, validated for CIS payments. So long as this has been verified with HMRC, all payments would be subject to 20% tax (with no valid UTR, these would be 30%).

See 'Registering for CIS (Construction Industry Scheme)

All compliant and FCSA accredited umbrella companies must complete an 'SDC assessment' with the worker to ensure they are not under supervision, direction and control in the manner in which they carry out their work. This series of questions asked over the phone, will explore how the worker goes about their day-to-day tasks on each and every assignment.

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