Agency

   
Q Why use Contractors from Manximum-Pay?
A Clients and agencies give many reasons for contracting staff from Manximum-Pay
  • A fear, if they take on direct labour, of falling foul of ever more complicated and one sided “employment” law.
  • A freeze on permanent headcount?
  • In order to maintain their ability to tender competitively.
   
Q What specifically are the benefits of using Manximum-Pay?
A
  • Certainty of employment status
  • Absolute financial protection under The Companies Act
  • Protection from employment and discrimination legislation
  • No requirement to pay Employers NI (a potential saving of 12.5%)
  • No requirement to pay WTR holiday pay (a potential saving of 8.33%)
  • No need to change current operating practices
   
Q Is Manximum-Pay a “Composite Company” or MSC provider?
A No - and the proposed regulations DO NOT affect Manximum-Pay.
The MSC regulations are targeted at Composite schemes and their providers who:
  • Claim their exotic shareholding arrangements circumvent IR35, and
  • Abuse the "dividend route" to avoid paying National Insurance
Manximum-Pay does not provide Managed Service Companies - we engage subcontractors directly ourselves and, rather than abuse company “dividend” and “expense” concessions, our subcontractors properly pay the full rate of Tax and National Insurance ordained by Parliament for the Self Employed.
   
Q Could we become liable for any subcontractors Tax or NI using Manximum-Pay?
A MSC regulations do not apply and with respect to IR35 the Revenue has confirmed “It will not be necessary for clients to check whether the legislation applies when they enter into a contract with the intermediary or to conduct new checks on the status of the intermediary." Manximum-Pay is recognized by the Inland Revenue as an intermediary company. Accordingly no client or agency can be held liable for any PAYE or NI contributions.
   
Q What changes do I have to make to my system to accommodate Manximum-Pay subcontractors?
A None. Using subcontractors with Manximum-Pay could not be easier - nor ongoing administration any more. Before a subcontractor is first paid we only require via fax to Manximum-Pay: On receipt Manximum-Pay will confirm receipt (usually within 2 hours) and allocate the subcontractor a unique reference.  Each subsequent week, when the subcontractor submits their time sheets, you process your payroll (or payment run) as usual and, quoting this unique reference, transmit the funds due to us.  Within 48 hours we will email you a VAT invoice that exactly matches this payment.  If there is any subsequent discrepancy or disagreement on the hours worked, or with regards to any payment, this will only be rectified by you adding to, or subtracting from, future payments; this variation being recorded on the subsequent invoice.
   
Q Who can benefit from being self-employed?
A Anyone who could benefit from being self-employed but particularly:
  • Ex-pats working less than a full year. They need not reclaim PAYE when they leave, but instead pay what is due at the end of the year.
  • Contractors affected by IR35 or the proposed MSC regulations, who can continue to be paid gross and claim expenses before tax.
  • Immigrants from the EU (including Romania & Bulgaria), who may not otherwise be eligible to work in the UK.
   
Q Why the Isle of Man?
A The Isle of Man, situated in the middle of the Irish Sea, is a self-governing dependent territory of the Crown which is not part of the UK.  It is a very stable and secure environment in which to do business and it boasts the longest continual Parliament in the world. Their legal system operates almost identically to the British and, save for its financial independence, the Tynwald often simply adopts laws passed in the UK.  The Isle of Man has a special relationship with the European Union (as set out in Protocol 3 to the UK's Treaty of Accession) which allows free trade between the Island and the EU and operates within the United Kingdom system of Value Added Taxes (VAT).  The Island enjoys an "AAA" credit rating.