people4 for sole traders
The people4 sites give you access to companies throughout the UK, who may be looking for your particular skills.
As a sole trader, you are very welcome to register as either a Candidate or a Client – or both – but there are a few details you need to be aware of.
Because of our legal status as an Employment Business, all of our Candidates need to be paid through a limited company.
Many of our Candidates work through their own limited company or through a limited company consultancy.
If you are working as a sole trader, you still need to be paid through a limited company for all your contracts through people4business Limited.
It is easy for you to do this, by registering with an umbrella company.
The umbrella company effectively employs you. It processes all your payments, deducting tax, National Insurance and their fee from the payment which they then send through to you. It is much like receiving PAYE earnings, with three key differences:
- you can claim expenses (your umbrella company will be able to give you guidance on this);
- you will be liable for both employee's and employer's national insurance contributions.
- some umbrella companies may also suggest that you set aside an amount from each pay period to provide for holiday pay, for when you want some time off.
At the end of the tax year, you will receive a P60 form detailing your pay and deductions.
For more information, please refer to our page on umbrella companies.
We do not allow any umbrella company Candidates to set an hourly rate lower than the «national minimum wage» – which is £6.08 per hour for workers aged 21 and older from 1 October 2011. In order to achieve this rate (allowing for employer's national insurance and holiday pay), we recommend that you set your rate no lower than £7.50 per hour.
Sole traders may also want to buy in professional services themselves from our Candidates.
In this case, you can register as a Client in the usual way – for more information see the Client zone.
Last updated 31.07.12
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