Payment Options

If you are a contract worker, working through Project Resource, you have three options as to how your pay is processed:

Umbrella Company

An umbrella company is a 3rd party organisation who will process your payments on your behalf, deducting PAYE tax and NI contributions as required and depositing your net pay into your bank account.

To learn more about the umbrella company option and to see a list of Umbrella Companies we recommend click here.

Limited Company

The term 'limited' derives from the fact that the company's finances are distinct from the personal finances of their owners (unlike the sole trader arrangement).  Shareholders in limited liability companies are not responsible for company debts, although if required, directors may be required to guarantee loans or credit granted to the company. There are administrative responsibilities such as registering at Companies House.

To learn more about the limited company option and to see a list of accountancy companies that we recommend as being able to advise and assist in the creation and operation of a limited company click here.

Construction Industry Scheme (CIS)

The construction industry scheme is a framework for payments made by contractors to subcontractors within the construction industry. Those working through the CIS scheme will already have their own limited company and be registered with HMRC for the CIS scheme.

To find out more about the CIS option and to see a list of accountancy companies that we recommend as being able to advise and assist in working through CIS, click here.