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IR35 fee payer

IR35 fee payer

As the IR35 fee payer we have compliantly made thousands of payments to limited companies since April 2017.

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frequently asked questions

frequently asked questions

We have grouped the most frequently asked questions to answer your queries. We are constantly updating these based upon your feedback.

the basics

why was the Off-payroll working legislation introduced?

To ensure that individuals who work through their own company pay employment taxes in a similar way to employees and would be employed were it not for their limited company or other intermediary that they work through.

HMRC have stated that they introduced these changes to improve fairness in the tax system by ensuring that individuals are not able to sidestep employment taxes or National Insurance Contributions by working through a personal service company (PSC).

how will the IR35 assessment be made?

HMRC have an IR35 assessment tool to support hirers and agencies in assessing status, known as the Check Employment Status for Tax Service (CEST).

If the hirer deems your status to be outside of IR35 for this assignment, giant will require a status determination statement from the hirer along with a copy of the HMRC online tool report (CEST) showing the questions and answers used to arrive at the decision of outside IR35.

what are your SLAs for dealing with queries / complaints?

We aim to respond to all queries within 24 hours and have a robust complaints procedure in line with our employee handbook.

how does the contractual relationship work?

Your company has a contract for services, with giant as the fee-payer. This is not an employment contract.

fpcf

I think my role is outside of IR35 – what can I do?

Under the Off-payroll working rules, it is the hirer’s responsibility to determine your IR35 status. If you do not agree with their determination, we recommend you speak with your agency or hirer to understand how they have reached their decision. The hirer should have an appeal process.

do I have a personal portal?

Yes, your portal includes all of the information you require to track your time, invoices and payments and also facilitates direct communication between us.

if I change to giant umbrella – what do I do with my limited company?

You do not have to close your company if you decide you wish to be paid through an umbrella company. You may choose assignment income that is inside IR35 to be paid through our umbrella company, but continue to invoice through your limited company for all other assignments outside of IR35. 

You should speak to your accountant and take advice as to whether there is a need for the company still to be open.

do you cover me with business insurances such as professional indemnity etc..?

No, this still remains the responsibility of your limited company and we will request copies of your insurance certificates during the onboarding process.

how is my assignment rate affected under the fee payer model?

if I’m inside IR35, how is the assignment rate affected?

The new rate will be calculated based on the assignment rate the agency pays to giant less: 

  • giant margin 
  • employer’s NI 
  • apprenticeship levy

We will issue you with a contract reflecting your agreed contract rate.

if I’m outside IR35, how is the assignment rate affected?

The new rate will be calculated based on the assignment rate the agency pays to giant less: 

  • giant margin

We will issue you with a contract reflecting your agreed contract rate.

how do your fees & margin work?

is there a set-up or cancellation fee for giant IR35 fee payer?

No.

do you retain a margin when I am not working?

No we don’t. We only retain a margin when we are processing funds to your limited company.

what is your margin?

Please refer to the net pay illustration calculation to check our margin.

what tax is deducted if I am inside IR35

employer’s NI and the apprenticeship levy, why is this taken from the rate?

Under the Off-payroll working rules, if inside IR35, the fee-payer (party paying your limited company) must deduct and pay to HMRC employer’s national insurance and the apprenticeship levy – it is a statutory requirement. The rate that the agency pays to giant must cover these employment costs and our margin. To get your new rate for your limited company, we deduct these costs first and the remaining balance is your new assignment rate, which is then subject to PAYE tax and employee’s National Insurance.

how is tax calculated?

PAYE tax is deducted by us using a Basic Rate (BR) tax code of 20%. Within approximately eight weeks HMRC send us an updated tax code to use, which will ensure we are applying the appropriate level of tax. If you leave our service before this tax code comes through you may have additional tax to pay on your self-assessment return. 

As the fee payer we are liable for deducting the wrong amount of tax. This liability cannot be transferred to you the contractor.

how does the invoicing, VAT & expenses work?

do I need to issue giant with an invoice to be paid?

No. For every payment we will issue a self-bill invoice which matches the payment we make to you and upon receiving the payment you will receive a remittance advice from us. All electronically.

how does VAT work?

VAT, if applicable, is charged by you on the new contract rate with giant. We will issue your company with a self-bill invoice which will show any VAT (and the tax deductions for those that are inside IR35)

can I claim expenses with giant IR35 fee payer?

If the agency are paying billable expenses, these will be paid to giant and we will pay them directly to your limited company.

If you have business expenses purchased by your limited company that you want to process to reduce your tax liabilities, then you will need to liaise with your accountant.

when & how often do you pay my PSC?

when do you pay my limited company?

Your agency will send us your timesheet information electronically (known as DX – Data Exchange) upon us processing the file, we will pay you the next working day via faster payment. Faster payment means the funds will clear in your account on the same day and so you won’t need to wait the usual 2-3 working days for payment to clear.

When we pay you we issue you with a remittance advice.

how often will you pay my limited company?

We will pay your company in line with the same frequency that your agency pays us – i.e. if they pay us weekly, we will pay you weekly; and if they pay us monthly, we will pay you monthly.

how do I leave the giant IR35 fee payer service?

what is the notice period if I wish to terminate the contract with giant?

Your agency will confirm the notice period for the assignment and we will populate this on the assignment schedule you are offered online with us.

can I leave you at any time?

Yes, ensuring that you have served the relevant notice period. Some agencies will only allow you to change engagement model either at the point of extension or new assignment and so you should check their policy on allowing changes. (there is no fee for leaving)

what about invoices and remittances?

do I need to raise invoices to giant?

No, when we receive timesheet details from your agency, we will issue a self-bill invoice.

how do I access my self bill invoice?

Self-bill invoices will be available to view and download via the giant portal which is mobile compatible and available 24/7. Your invoice will be available to view the day prior to the scheduled payment.

will the remittance advice detail my tax deductions?

Yes, it will. Each time you are paid, a remittance will be made available on your portal. This details the gross invoice amount, any applicable deductions such as tax and National Insurance (if you’re inside IR35) and the net total. See an example below of what you can expect it to display.

joining

how do I join giant IR35 fee payer?

We will need to agree this engagement model with your agency first. Once agreed, when we receive your assignment information from your agency, we will contact you to commence your onboarding. 
 

what information do you need from me?

We will ask you to provide us with your personal details (e.g. name, DOB, address, etc..), your company details, including your company registration number, VAT status, business insurance certificates and your business bank details; we will also require you to complete and identity check. Once received, we will email you your login details to the portal. Here you will be asked to accept your assignment and complete a Starter Declaration.

why do you need to carry out an identity check?

Under our anti-money laundering policy, we are required to also check your identity and address and will request a copy of your passport and proof of address documents during onboarding.

what about contracts?

Once you have completed the onboarding compliance steps and your agency have confirmed your assignment details,  your contract documents will be made available to you to view and accept electronically online.

keeping your limited company

keeping your limited company

If your hirer decides you are caught by IR35 they may still allow you to trade through your limited company. The company that pays your limited company is known as the fee payer. 

The fee payer will enter into a new contract with your limited company at a lower rate to enable the fee payer to deduct its margin, employers national insurance and the apprenticeship levy. The fee payer will then deduct PAYE tax from the contract rate before paying the net amount to your limited company. These deductions are governed by legislation.

Keeping your limited company allows you to use it for both inside and outside IR35 assignments.

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benefits of **giant** IR35 fee payer

benefits of giant IR35 fee payer

We have over a decade of experience of sitting in the contract chain between agencies and limited company contractors for clients such as Barclays, Alexander Mann Solutions, Cielo and more. 

As the IR35 fee payer we have compliantly made thousands of payments to limited companies since April 2017. 

  • speedy set up
  • bespoke, mobile enabled software 
  • invoice, remittance and payment trackers
  • nearly 30 years of experience
  • 100% compliance
  • self-bill invoicing (no work for you)
  • full contractor support
  • SMS alerts
get in touch

net income

weekly income

net income

£

Please note that these calculations are based on the following series of assumptions:

  • inside IR35 status with PAYE tax and employee’s NI deductions applied
  • basic Rate (BR) tax code used
  • average savings made with giant advantage; no expenses

how it works

how it works

 

If the hirer says your assignment fails IR35 you can continue to operate via your own limited company allowing you to benefit from future assignments which are outside IR35.

The legislation applies to contracts entered into, or payments made, on or after the 6th of April 2020. Therefore the fee payer arrangement should be set up and ready well in advance of this date. This will include your agency issuing a contract to giant

We have grouped below the most frequently asked questions to allow you to get into some of the detail. We are constantly updating these based upon your feedback.

find out more
sign up today

sign up today

If your hirer is allowing you to continue to use your limited company after April 2020, whether inside or outside IR35, and you would like to be paid by the giant IR35 fee payer service then please contact both giant and your agency. 

Our joining process is very simple. 

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