Lioness Business Group receive your assignment rate from your agency or end-client, make the legal deductions, and then pay you your salary. It’s as simple as that.

Upon registration you will complete a ‘HMRC starter check list’ the answers provided on this form will determine your tax code notification from HMRC, please forward this to us via email.

All employment costs are deducted from the assignments rate (employers’ NIC’s apprenticeship levy), together with pension contributions (if applicable), and holiday pay. This leaves you with the gross pay figure upon which you will pay personal taxes.

We deduct a small margin for the administrative responsibilities (to cover the costs such as staff, equipment, business running costs, etc.) – and that’s it!

PAYE companies are a standard UK limited company, operated by a third party acting as an ‘employer’ on behalf of its contractor employees. A contract is signed between the umbrella company and recruitment agency (or end client) on behalf of the contractor who will be carrying out the assignment. The PAYE company provides a payroll service to its employees, processes all timesheets and invoices, and pays its employees a salary after allowing for deduction.

Your PAYE company has a contract with the end-client or agency, and you (the contractor) have a contract with the agency.

The payroll company (not the client) is your employer in this relationship, and therefore is liable to pay employment taxes. And clearly, the money to cover any employment costs has to come from somewhere. In this case – it must come from the rate charged by the PAYE company to the end client, this is called the ‘assignment role’.