United Kingdom


Introduction

Uniglo Financial can provide a comprehensive range of payroll services in The United Kingdom. Dependent on the duration of the contract we would recommend one of three solutions namely:

  • Sole Trader – you can retain up to 85% of your money.
  • Limited company- You can retain up to 80% of your money
  • Umbrella company- you could retain up to 70% of your money

Immigration
Nationals of the EU/EEA Member States and Switzerland are able to work without restriction in UK, except for citizens of the two most recent members Bulgaria and Romania.

Tier 2 (General Visa)

Our partner company would sponsor contractors on a Tier 2 (General) UK Work Permit. The permit would last for 3 years. After 3 years the visa would then be renewable for a further 2 years.From a contractual perspective, the company that sponsors the contractor would set up a contract with your recruitment agent/end-client and invoice them each month. So for instance if you secured a contract for £500 per day and worked 20 days per month, they would invoice for £10,000 per month. Then they would pay you.

In terms of acquiring the permit; the process has changed since the beginning of April. Your permit would be considered an ‘out of country’ application. With ‘out of country applications’, the UKBA sits once a month on the 10th of each month to approve these applications, the visa would be approved by 11th. Applications have to be lodge by the 5th. So if you were looking to go ahead in December we would for instance need to make the application on the 5th December, it would then be approved on the 11th. Once the application is approved, the Certificate of Sponsorship along with substantiating documents would be sent to you and you would then need to take them to your local British Consulate to obtain ‘Entry Clearance’. This final step is simply administrative and should take 1-2 days, consulate depending. Once you have obtained ‘Entry Clearance’ you and your family would then be free to enter the UK to commence your contract.

Tax residency

Residence has historically been determined by physical presence in the UK for at least 183 days in any one tax year (6 April – 5 April), or if visits (or intended visits) for four consecutive years average 91 days or more. However, recent tax cases have shown a change in HMRC policy in using the number of days as the determining factor. Instead, a more ‘qualitative’ approach is being used which looks  at other factors such as availability of UK accommodation, location of family and the maintenance of social or business interests in the UK. The Government plans to introduce a statutory definition of residence from April 2013.

Individuals are normally regarded as ordinarily resident if they have been resident in the UK for three years or it is clear from the date of arrival that the intention is to stay for three years or more. Individuals are also treated as ordinarily resident if they become resident and have UK property available for use.

Income Tax bands

  • Basic rate £0 – 34,370                    20%
  • Higher rate £34,370 – 150,000    40%
  • Additional rate Excess                    50%

National Insurance (Social Security)

You pay Class 1 National Insurance contributions. The rates are:

  • if you earn between £107 and £146 you’re automatically covered for State Pension and benefits
  • 12% on your weekly earnings between £146 and £817
  • 2% on any weekly earnings over £817

You pay National Insurance with your tax. Your employer will take it from your wages before you get paid.

If you’re a director of a limited company, you may also be your own employee and pay National Insurance Class 1 through your PAYE payroll.

How much will I take home?

Please contact our UK specialist who will discuss your personal circumstances with you and help you to minimise your tax and social security liabilities, within the bounds of UK legislation.