Contractor FAQ's

Since inception in 2017, LSP have deployed contractors with our Clients and Developers all over Europe, Asia and the rest of the globe. We are experienced in the process of helping our contractors set up their payment model and to assist with mobilisation and deployment alongside our trusted partners.

What documentation is required to work with LSP?

Our dedicated Compliance department work closely with all our contractors providing support and advise throughout the process. Prior to starting your contract LSP will require the following information:

  • A clear copy of your Passport (Please note that by providing this, you consent to LSP conducting an ID Check via a trusted partner.) 
  • Certificate of Company Incorporation
  • VAT Registration Certificate (if relevant)
  • Bank Details (please note that we will require these on an official document which also shows your company name. This can be a screenshot or picture of the relevant part of your bank statement, for example.)
  • Insurance certificates 
  • A1 Certificate (if applicable)
  • Any relevant certifications and/or qualifications

How do I get paid?

As a work-seeker, you can choose three different ways of working with LSP when providing your services in the UK. There are different reasons why you might choose one way of working over another – each contract type varies in terms of what pay rate you will receive and what benefits (if any) you are entitled to. Ultimately, it is up to each work-seeker to determine which way of working suits you best as LSP cannot advise you on which option you should choose.

In simple terms, LSP engage temporary workers providing their services in the UK under one of the following three models:

1. PAYE (PAY AS YOU EARN) 
A PAYE worker is an individual engaged on a contract for services (not a contract of service i.e., employment contract) to work temporarily via LSP for an end client. This category of worker is generally identified as an “agency worker” and is within scope of AWR. LSP deducts PAYE tax and NI insurance at source and pays the temporary worker a net sum. 

2. UMBRELLA COMPANY  
An Umbrella Company is a UK company that employs workers on an over-arching contract of employment and provides these workers to LSP and LSP in turn provide the workers to LSP’s end client. The worker in this scenario is also classified as an “agency worker” for the purposes of AWR. LSP pays the approved Umbrella Company gross for the hours worked by the worker, and the Umbrella Company makes all relevant tax and employment deductions before paying the worker a net sum. You can view the list of preferred umbrella suppliers to LSP here.

3. PERSONAL SERVICE COMPANY (PSC) 
A personal service company is a UK Limited Company that is owned and managed by the individual providing the services to the end client. LSP pays the PSC a gross sum. Typically, the contractor (who will be the director/shareholder) will be paid by the Limited Company either by way of wages (subject to employment taxes) and/or by way of dividends (subject to corporation tax). 
You can find out more by reading the example PAYE and Limited Company contracts below:

PAYE Contract** | Limited Company Contract**

**These contracts are general terms of business, the specific details relating to actual assignments would be confirmed when an assignment is offered

SUBMITTING TIMESHEETS

LSP operate an online timesheet portal enabling you to log your hours from a device or computer and without the need for paper timesheets. This efficient solution means you can submit hours and expenses and receive digital approval from your manager. At the beginning of your contract you will receive your personal login details to the portal.

InTime Contractor User Guide

 

What is IR35?

Due to wide non-compliance with the IR35 rules, the government introduced reforms in the public sector in April 2017 – these are known as the “off-payroll rules”. The Chancellor announced in the Budget on the 29th October 2018 that the government will also reform the off-payroll working rules in the private sector. On 17th March 2020 the UK Government announced a 1-year delay to new IR35 Off-Payroll Working rules, in light of ongoing COVID-19 challenges and effects, the new implementation will take place from 6th April 2021 from this date, the liability for assessing IR35 status is no longer on the contractor’s intermediary but on the client.

Access our IR35 Guide here to find out how this will impact you.

Key Information Document

This legislation incorporates a revision into the Conduct of Employment Agencies and Employment Businesses Regulations, or ‘Conduct Regulations.’

The purpose of the implementation of Key Information Documents was to increase pay transparency for agency workers and provide key information regarding their assignments. You can view an example of the KID with the various different pay models here. Download the example KID