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Contractor Zone

FAQs

Please use the links below to access the relevant category and reveal the answer to a question. Should you still require clarification on an area that has not been covered below, please contact us

Timesheet Process:

For information on how to process timesheets please see the relevant guide provided for candidates and employers.

Payment Queries:

1. If I do not have a P45, what do I do?

If you are awaiting your P45 from your previous employer OR do not have a P45 that is less than 8 weeks old, you will be required to fill out a P46 form. If you require a P46 form you can download a copy at the following website and post directly to your Hudson Consultant:

http://www.hmrc.gov.uk/forms/p46.pdf

Please note that upon receipt of your P46 you will be put onto an emergency tax code (543L week one code) and taxed as follows:

  • Tax free up to L104.52 per week
  • Thereafter you are taxed at 22%

Hudson will then await a coding notice from the Inland Revenue and adjust your tax code upon instruction from the Inland Revenue. Please note: this can take up to 8 weeks to be received from the Inland Revenue. Should you wish to check progress with the Inland Revenue for your coding notice, you can do so by contacting the Tax Office on:

For Contractors based in England

Phone: 0845 300 0627
Or: The Inland Revenue
Chapel Wharf Area
Trinity Bridge House
2 Dearmans Place
Salford
M3 5BS
Quoting reference 951/ JZ17858

For Contractors based in Scotland

Phone: 0845 300 0627
Or: The Inland Revenue
Centre 1
East Kilbride
G79 1AA
Quoting reference 961 65 03437

2. What if I lose my P60?

A replacement P60 cannot be supplied after the original copy has been issued. If your P60 is lost, you will need to contact the employer or agency that issued it for a 'statement of earnings' letter. This letter will summarise your earnings whilst in employment. 

3. Am I eligible for Sick Pay?

The Department for Work and Pensions has advised that from 27 October 2008, subject to meeting all the qualifying conditions, all PAYE temps will have the same rights to Statutory Sick Pay (SSP) as other employees from day one of their contract.

The standard SSP weekly rate of £82.60 in the 2010-2011 tax year will apply, if you have average earnings of £102 per week or more.

For any further information please contact our Contractor Payments team on 0800 093 0717 or email contractorpayments@hudson.com

4. Am I entitled to Maternity Pay?

As a temporary worker you may be entitled to receive Statutory Maternity Pay (SMP) provided that you have met the relevant qualifying criteria. Under the Agency Workers Regulations you may also be entitled to claim payment for attending ante-natal appointments during your assignment, subject to meeting the relevant qualifying criteria. For further information on entitlement to SMP or to request details of the qualifying criteria please contact our Contractor Payments Team on 0800 093 0717 or via contractorpayments@hudson.com

5. Am I entitled to paid time off to attend antenatal appointments?

Under the Agency Workers Regulations 2010 (AWR), subject to meeting the relevant qualifying criteria, you will be eligible to claim payment for time taken to attend antenatal appointments.

You should discuss arrangements to attend antenatal appointments with your Line Manager and ensure that you provide adequate notice of your intended appointment. You should try to avoid taking time off from your assignment where you can reasonably arrange classes or appointments outside of standard working hours.

In order to claim payment for time taken to attend an antenatal appointment you should complete our Payment Form which you can access here. The form should be submitted to our Contractor Payments Team along with your timesheet to ensure your payment is processed.

For further information please contact the Contractor Payments Team on Freephone 0800 093 0717 or via contractorpayments@hudson.com

6. If my wife has a baby, does this affect my tax code?

If you earn less than £40k per annum you can apply for Children’s Tax Credit. You will need to contact your local Tax Office for a copy of the claim form to be sent out to you. In most cases, it offers a higher tax-free sum.

7. Am I entitled to compassionate leave?

No, this is paid at the Client’s discretion and would be something your Hudson Consultant would need to discuss with the Client, upon your request for compassionate leave.

8. I'm a student. Do I get taxed the same?

No. Students need to complete a form called P38. If you require a P38 form, please download a copy from the following website and post it to your Hudson Consultant directly:

http://www.hmrc.gov.uk/forms/p38s.pdf

This is a declaration form asking you to declare:

  1. That you will only work in your holiday periods
  2. That you will only work for one employer in your holiday period
  3. That you earn less than the yearly allowance of L4,615.

Given you meet all the above criteria, you will not be taxed.

9. Am I eligible for payment while attending Jury Service?

If you are summoned for Jury Service you will be entitled to some form of compensation from the Court for loss of earnings, travel costs and for general subsistence (note: subsistence rate is fixed).

If you are a PAYE worker you can claim this compensation, by providing Hudson with notification of Jury Service from the Court and a Jurors loss of earnings certificate (Form 5223). Please send this to:

Hudson
Contractor Payments Team
130 St Vincent Street
Glasgow
G2 5HF

Upon completion Hudson will return this certificate to you and the form should be taken with you on your first day of Jury Service.
 
If you are working through a Limited company you will need to provide the court with some evidence of your loss of earnings. This could take the form of a letter from your Accountant or Umbrella company.

The compensation you receive is set on a standard formula and will not take into account your actual financial loss. Compensation entitlements should be set out in the letter you have received from the court. Reimbursements from the court will usually be sent to you within 5 working days of the end of your Jury Service.

10. What happens to my National Insurance Contributions when I return to my home country?

In the UK, both the employee and the employer pay National Insurance Contributions. The vast majority of these funds are used for the National Health Service (NHS).

Some funds are, however, apportioned to a State Pension Fund. In order to find out your entitlement to any funds, you will need to contact your Superannuation or Pension Fund in your own country and provide them with the following information:

  1. Your National Insurance Number - If you do not have a permanent National Insurance Number you must get one prior to making a claim on any funds. Without this number there is no way the funds can be allocated to you, as your National Insurance Number is your only identity number (funds in the pension for temporary numbers are kept in a pool to be allocated to permanent numbers when they come in). 
  2. After you have supplied your Superannuation/Pension Fund with your Permanent National Insurance Number, you will need to also supply them with details of your employer, how long you worked for the employer and copies of any P45s, P60s or payslips. 
  3. After providing all information, your Superannuation/Pension Fund will contact the State Pension in the UK and, providing funds are made available, the funds will be transferred to your Superannuation/Pension fund in your own country to be collected at the age of 65.

Under no circumstances does the State Pension allocate funds to individuals - all funds go straight to the Superannuation/Pension Fund.

11. How do I get a tax refund?

For advice regarding the refund of excess tax, please contact our Contractor Hotline on 0800 093 0717 or e-mail contractorpayments@hudson.com.

12. If I wish to contact the Hudson Tax Office, which number should I call?

For Contractors based in England

Phone: 0845 300 0627
Or: The Inland Revenue:
Chapel Wharf Area
Trinity Bridge House
2 Dearmans Place
Salford
M3 5BS
Please quote reference: 951/ JZ17858

For Contractors based in Scotland

Phone: 0845 300 0627
Or: The Inland Revenue
Centre 1
East Kilbride
G79 1AA
Quoting reference 961 65 03437

13. What if I need to invoice for VAT but can’t because I’m awaiting my VAT number?

Under these circumstances, you should complete and return, to your Hudson Consultant, the VAT Registration Confirmation form included with your initial contracts and starter pack. Once you have received your VAT Certificate please send a copy to your Consultant who will arrange for any back-dated VAT to be paid to your limited company.

In line with UK regulations Hudson cannot issue VAT invoices before obtaining a copy of your VAT Certificate or other letter of notification from Her Majesty’s Revenue & Customs. Please note Hudson cannot accept VAT Returns as proof of VAT status.

14. How many miles can I claim for and how much can I claim per mile?

In accordance with individual Client agreements, mileage for PAYE/Ltd co. can be claimed as a non-taxable element for rates up to 40p per mile. This is in-line with the current HM Revenue & Customs legislation. This rule applies for the first 10,000 miles per tax year. If the rate is greater than 40p, then the difference is subject to PAYE/NIC.

Once you have exceeded the 10,000 miles then only the first 25p per mile will be paid as a non-taxable element and thereafter the excess will be subjected to Tax and NICs.

A total accumulated mileage figure per tax year should always be completed on the claim form to assist with the above calculation.

15. Which part of my journey can I claim for?

All journeys must be of a site-to-site basis and must not include mileage from home to your normal place of work or returning from this point to your home address.

If in the rare event you do not have a usual place of work and this differs on a day-to-day basis, then mileage can be claimed from your home address.

Details of all journeys claimed for must be outlined on the form.

A mileage rate must always be agreed to quantify the claim. It is not acceptable to just claim directly from a fuel receipt as we are unaware how much fuel was used for business purposes. In cases where no mileage rate is agreed and a receipt is signed off instead, the claim will be subject to PAYE & NIC deductions.

No Client authorisation letter is required prior to payment.

You are able to claim tax relief through the HM Revenue & Customs on the difference between the mileage rate (if below 40p per mile) and the 40p threshold. This is completed on a self-assessment tax return.

16. Can I claim travel related expenses other than mileage?

Parking & Toll Payments: When these kinds of expenses are incurred for business purposes, receipts must always be attached to the claim form.

Rail/Taxi/Bus Fares: The expense claim form must be completed with details of the journey outlined. Receipts must always be attached to the claim form.

Hotel & Lodging Expenses: All lodging expenses need to be detailed by name of Lodging on the form. Receipts must always be attached to the claim form.

Telephone Charges: The cost of business telephone calls made from home or your mobile is deductible and can be claimed as a business expense. You must provide a detailed statement highlighting the business calls from the personal calls. If you cannot provide a detailed statement then the telephone calls will have to be paid as an allowance, which is subject to PAYE/NIC.
Other Expenses: If you have any further expenses that fall outside the main types above, please complete the description of what the expense you are claiming relates to and enter in the 'Other' field. Receipts must always be attached to the claim form.

17. How do I indicate VAT if I am a Ltd Company Contractor?

When a Contractor submits a claim form and is working via a limited company which is VAT registered, the VAT element must be shown separately to the net (excluding VAT) on the claim form. Hudson will process the expense claim net of VAT. VAT will be added to the payment at the time of processing and subsequently displayed on the Invoice. Hudson will then recover the input VAT from HM Revenue & Customs. The above process also ensures that the Client is not then charged VAT on a claim that already includes VAT.

The temporary worker/Contractor and the Client must sign all expense claim forms with copies of the VAT receipts attached.

Contracts & Legislation:

I am working through a Limited company and need to take out insurance cover. What insurance cover will I need and who can provide me with this cover?

Working for yourself carries certain obligations and responsibilities. Mistakes can be costly and because you have a responsibility to your Client/s, they can have recourse in law against you for financial loss.

If you work through an Umbrella company, you may already be covered by their insurance but please ensure that you check exactly what insurance cover you have before the commencement of your assignment.

If you work through your own limited company, you will need to consider the various types of insurance cover relating specifically to the supply of your professional services, namely: 

  • Professional Indemnity Insurance 
  • Employers Liability Insurance 
  • Public Liability Insurance

For more information on insurance cover and to speak to an independent advisor on a policy suited to your individual circumstances, there are various providers in the market.

Here are just a few sites for you to gain a greater understanding of how your insurance requirements can be met:

What level of insurance cover do I need?

Please contact your Hudson Consultant directly to discuss the levels of insurance cover required during your assignment.

I am considering setting up my own Limited company or perhaps utilising an Umbrella Service. Who can direct me in this regard?

Hudson operate a Preferred Supplier List of Umbrella Companies that we engage with.  Please refer to the Contracting Options section for further guidance and information on how our preferred Umbrella Company suppliers may be able to assist you during your assignment.

If you are considering setting yourself up as a Limited Company we would encourage you to seek independent advice from an accountant, financial planner or tax consultant to guide you through the process, considerations and requirements of setting yourself up in business.

General Queries:

Who do I contact if my personal details change?

Please contact your Hudson Consultant to confirm the appropriate changes to your personal details.

If I need a reference who do I request one from?

If you require a reference for your bank, landlord, insurance company or an estate agent please contact our Contractor Payments Team via email at contractorpayments@hudson.com and they will provide the relevant details.

How do I set up a bank account if I’ve just arrived into the UK?

If you have recently arrived, opening a bank account in the UK can prove difficult. You will typically need your passport, proof of address (such as utility bill) and letter of employment. We are able to assist you with a letter of introduction. Should you require this service please contact Contractor Payments on 0800 093 0717 or e-mail contractorpayments@hudson.com.

How do I get a National Insurance number?

National Insurance provides for unemployment and social security benefits, state pensions and the National Health Service (NHS). You are required by law to obtain a National Insurance Number.

To get a National Insurance Number, you will need to register with the Department of Work and Pensions (DWP) at a Jobcentre Plus office local to you. Call the Jobcentre Plus National Insurance Number Allocation Service on 0845 600 0643 who will advise you how proceed.

You may be required to make an appointment at your local Jobcentre Plus office bringing the following documentation with you:

  • A letter of confirmation of employment - you can use your contract for this
  • Your passport
  • Proof of your address
Do I get paid for my lunch hours?

No, you do not receive payment for taking lunch. However if you work through your lunch hour and have opted out of the 48-hour working week, you will be paid for the hours that you work.

I have not worked through Hudson for some time. Will I receive new login details now that I have returned to Hudson for a new assignment?

No. As long as the period not worked with Hudson is less than 12 months, you will be able to access the Hudson Online Timesheet Portal as before. If you have forgotten your password, you will be able to request a new one by calling the Contractor Payments team.

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