Your Timeseet

Timesheets are in a two part set using self – carbonating paper and must be completed in capital letters and in ink. Please ensure you complete your timesheet correctly to avoid delays in receiving you pay and staple any additional paperwork to the timesheet.

Click here to view PDF guide to completing your timesheet.

Click here to view and print an expenses sheet.

Prompt weekly submission of your fully completed time sheet will help ensure you are paid on time. Payment can only be made from original timesheets. Once your timesheet is completed, and has been signed by the client, you must:

• Hand the back copy to the client
• Post the top copy to our accounts department on Friday each week.
• Ensure that any additional paperwork is stapled to timesheet, for example BACS form, P45, P46 expense claim form and receipts.
• Keep the second copy for yourself.
• Should your assignment end mid week, submit your timesheet as normal, as soon as possible.

Tax & National Insurance

If you do not have a National Insurance number your should contact your local office of the Department of Work and Pensions (DWP), which you will find listed in the telephone directory.

If you are a UK Resident...
... all you need to do is phone the DWP (Department of Works & Pensions) on 0191 213 5000. You will be asked to answer a few questions. The DWP will then check your records to see if a child benefit has ever been issued under this persons name – if not – you will be sent a C5400 form to complete. An NI number will then be issued within two weeks of either the call being made or the form being received.

If Someone has just entered the UK...
... you need to book an appointment at the "Job Centre plus" office (this should be local to them and the number can be found in the yellow pages). You will have a short interview and complete the relevant forms. These forms are then sent to the DWP, who then, in turn, process the application. From the time the DWP receive the paperwork, to a NI Number being issued, is no more than four weeks.

If you do not supply us with your National Insurance number at the time you register, please ensure that you write the number clearly on your timesheet.

If you are exempt from National Insurance or pay a reduced rate, please staple the original copy of your card to your first timesheet. We will keep the card all the time you are working through us. If this applies to you, please contact the Payroll Team providing your name, date of birth, worker number and address to which you require the card to be sent.

If any deductions have already been made, on receipt of an exemption certificate, as long as deductions have been made in the current tax year, we will refund them.

If you earn between £84.00 and £97.00 per week, no NI deductions are made but for benefit purposes, you are considered to have made contributions. (Lower Earnings Limit)

The Earnings Threshold for tax year 2006-2007is £97.00 per week (the same level as PAYE threshold)

If you earn between £97.01 and £645.00 per week, Class 1 contributions are deducted.

The Upper Earnings Limit for tax year 2006/2007 is £645.00 per week. Employee contributions are only deducted at 11% from earnings between £97.00 - £645.00 per week. Any earnings above this are subject to contributions at 1%. Employers contributions are payable at 12.8% on all earning above the Earnings Threshold.

PAYE

Tax Codes
The numbers in the tax code are used to work out the amount of tax-free earnings you are entitled to in the tax year.

For example 503L = allowance of £5,030
The letters show how it should be adjusted following any changes in the budget.
For example:
BR – indicates that tax will be deducted at Basis Rate (22%) with no tax free allowances.
NT – indicates that no tax is to be deducted (Students)
DO – Liable at higher rate tax (40%)
L – Basic Personal Allowance.

PAYE Thresholds – effective 6th April 2006

This level of earnings at which income tax becomes payable is £97.00 per week

RATES

Starting rate 10% up to £2,150
Basic rate 22% from £2,150 - £33,300
Higher rate 40% over £33,300

Tax Basis

Cumulative – this is how PAYE is normally calculated. An employee’s previous pay and tax figures in the tax year are taken into account to calculate the correct deductions. Any deductions or refunds will automatically be made throughout the year so a tax rebate will not be necessary.

Week One Basis – deductions are calculated as though it is the first week of the tax year, as we don’t take into account previous pay or tax details. It is a temporary tax code and is used if we do not receive a P45. This is also known as emergency tax, and example being 503L WK1

Tax Office Details

TECHNICAL	TRADES
Inland Revenue	Inland Revenue
Queens Keep	8 Ogle Road
1-4 Cumberland Place	Southampton
Southampton	Hampshire
SO15 2WN	SO14 7HX
0845 302 1400	0845 302 1400
TAX REF: 663/H1245

A guide to claiming expenses for contractors and temporary workers

Contractors and freelancers travel and expense payment procedure

Expense Claim Forms

Hill McGlynn expense forms can be found here. You should ask the client whether to use their expense claim form or use the Hill McGlynn expense claim form.

Expense claim forms MUST always be signed by the client and worker and be stapled to the worker’s timesheet and the total £ value of the claim MUST be entered on the timesheet.

Rules and regulations for the mileage and expense claim form

Mileage for PAYE/LTD – in accordance with individual client agreement, mileage can be claimed as a non-taxable element for rates up to 40p per mile. This is in line with the current HM revenue and Customs legislation. This rule applies for the first 10,000 miles per tax year.

If this figure is exceeded 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 nic’s.

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

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.

Claim details of all journey’s, must be outlined on the form. Petrol receipts must be attached and total at least to the value of the claim.

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

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

Parking and Toll Payments

When these kind of expenses are incurred for business purposes, receipts should be attached wherever possible.

Rail Fares

Once again, the expense claim form must be completed and details of the journey outlined. A receipt MUST always be attached to the form.

Hotel and Lodging Expenses

All lodging expenses need to be shown on the form and a receipt MUST be attached to validate the claim for reimbursement.

LTD Companies and VAT

When a worker submits a claim form and is working via a LTD company that is VAT registered, the VAT element must be shown separately on the invoice. Hill McGlynn will process the expense claim net of VAT. VAT will be added to the payment and subsequently displayed on the remittance. Hill McGlynn 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 returns.

If you have any further queries, contact Payroll.

Foreign Workers

If you are a worker who has recently arrived in the UK, then in order to work for Hill McGlynn (or via any Agency) you need to complete the HM Revenue and Customs (HMRC) form P86.

The form is used by HMRC to help them decide on a workers residence and treatment for income tax and allows them to award you the relevant tax allowances. Once you have completed this form you need to send it to your local tax office. If you do not know this, click here for details of local tax office.

Click here to obtain the form.

You will also need to obtain a National Insurance (NI) Number.

To obtain an NI number you need to book an appointment at your local "Job Centre plus" office (the number can be found in the yellow pages or via the internet at www.jobcentreplus.gov.uk. You will have a short interview and be required to complete the relevant forms. These forms are then sent to the Department of Work and Pensions (DWP), who then in turn, process the application. From the time the DWP receive the paperwork to a NI Number being issued, should be no more than four weeks.

Limited Companies & VAT

If you intend offering your services through a limited company:

• You must have in your possession a countersigned Terms of Assignment of Consultants via a Limited Company Contractor (HSR20)
• At the beginning of your first assignment with Hill McGlynn , the accounts department must receive a copy of the Certificate of Incorporation issued by the register of companies and a copy of the VAT registration certificate (if applicable) before any payments can be made to your company. Failure to provide these documents will result in PAYE deductions being made.
• An invoice from the company must be submitted with each timesheet.
• The invoice must match the timesheet.
• If we are paying you by BACS, the bank account must be in the name of the limited company and must be a UK bank account.
• N.B: for limited companies which are not VAT registered, an invoice number is not a legal requirement, but it is the policy of Hill McGlynn & Associates Ltd that an invoice number is quoted, as this is the best accounting practice.
• We are only able to pay through Limited Companies who are registered in the U.K and they must have U.K bank accounts.
• We are not able to pay overseas Limited Companies, nor can we send money to a U.K company through an overseas bank account. This is not a legal requirement, but it is strict company policy.
• (UK = England, Wales, Scotland, Northern Ireland. For VAT purposes only, the Isle of Man is considered to be part of the UK)

Click here to view an example of a invoice.

Cis Holders

Holders of valid CIS 4, 5 and 6 cards are required to produce their current card for examinations; a photocopy will be taken for our records

Do you have a P45 for the current tax year?

YES - Your P45 must be sent to our accounts department stapled to your first timesheet, if you fail to do this, you may be over taxed.

NO - You must complete a form P46 and sign the declaration where applicable. Write your name, Date of Birth, and if known, relevant reference number in the “Employers PAYE reference” box on the bottom half of the form. Send form P46 stapled to your first timesheet to our accounts department. If you fail to do this, you may be taxed incorrectly.

• Once received, the information on the P46 will be input from us and the form sent to the Inland Revenue to enable them to calculate the correct tax code and send us notification of coding (P6)
• It can take between 2 and 10 weeks for the Inland Revenue to notify us and we cannot use a P2 form issued to the temporary worker or a P6 issued by a tax office other then our own.
• When we receive the P6 we will amend the tax code. The next time a payment is made any adjustments (rebates and claw-backs) will be generated.
• Contact Payroll Team to request your P45 should your employment with Hill McGlynn come to an end. These requests are checked on a weekly basis, therefore we would aim for your P45 to reach you within one week of your final day of work.

Bank Holiday Payments

Christmas 2006

Week ending 15/12/06 will be processed on Wednesday 20/12/06 and will be in your bank account on Friday 22/12/06

Week ending 22/12/06 timesheets need to be in Thursday 21/12/06. Timesheets will be processed Friday 22/12/06 and will be in your account Thursday 28/12/06. Any timesheets received after Thursday 21/12/06 will be processed 03/01/07 and will be in your account on the 05/01/07

Week ending 29/12/06 will be processed 03/01/07 and in your account Friday 05/01/07

Easter 2007

Good Friday 6th April 2007

Easter Monday 9th April 2007

Week ending 31/03/2007 – All timesheets need to be with us by 11 o’clock Tuesday 03/04/07 to be processed and will be in your account Thursday 05/04/07.

Week ending 06/04/07 pay will be run as normal on Wednesday 11/04/07

Change of Circumstances

Personal Identity Number

Shortly after being placed in your first assignment, you will be allocated a 6 digit worker number made up of three letters (normally the first three of your sir name) followed by three numbers. This number will be printed on the time sheet accompanying your weekly pay slip, and also on your pay slip. Please quote this number on all correspondence with our accounts department.

Bank details

To view the bank details form, click here.