PAYE FAQs

We deal with temporary operatives on a daily basis and from our experience of working with them, we have put together a list of the questions that new Sprite operatives often ask:

Popular Questions
What is a PAYE contract of employment?

A PAYE (Pay As You Earn) contract of employment allows independent contractors the opportunity to secure a contract without the need to set up a limited company.

This is an equally good alternative for operatives who are new to contracting, as well as for those who wish to focus on securing work while leaving the administration to someone else.

How do I register with Sprite?

Contact our Customer Services team on 01252 705 288 (8am – 6pm, Monday to Friday) and they will go through the registration process with you.

Before you make the call, please ensure you have the following information to hand, as you will be asked for this during the registration process:

  • Proof of identity
  • Details of assignment
  • Bank account details - this is where your payments will be deposited.
  • Signed contract documents (which will be sent to you after registration)
All Questions
Does engaging with Sprite affect my work?

No, working with Sprite does not affect your relationship with the company with which you carry out your temporary assignment. Sprite adopts the role of an employer, and subcontracts your services to the end client.

How much does Sprite charge?

There is no joining or leaving fee at Sprite. We retain a small margin from the invoiced amount paid to Sprite by your agency only on the weeks or months you work. No work, no margin. You receive many benefits from Sprite, and there are no hidden charges.

Is working on a PAYE contract of employment the same as being self-employed?

No, everyone who works for Sprite on a PAYE contract of employment will be employed by the company. If you are a self-employed operative, Sprite may offer you the option to contract with them – please call Sprite Customer Services for further details on 01252 705 288.

What are the benefits of working with Sprite?

There are a number of reasons why joining Sprite may be right for you.

  • We pay you weekly, with deduction of PAYE income tax and National Insurance contributions in the same way as any employer would.
  • Our margin deduction is clear and simple, with no hidden fees.
  • We provide a comprehensive level of insurance for employees, including free personal accident insurance.
  • You will be auto-enrolled into our workplace pension scheme and benefit from tax and NI (National Insurance) savings associated with this.
  • We will send you a weekly text message confirming your net pay.
  • We offer free bank transfers to your UK bank.
  • Your taxes will be deducted and paid to HMRC as required, and we will provide you with copies of your annual P60 and any other tax documents that may be required.
  • You have the flexibility to move from temporary assignment to temporary assignment without the requirement to move from your employer (Sprite). This means you can carry out numerous temporary assignments, while only having one employer. This continuation of work can be seen as very favourable to the likes of Banks and Building Societies when determining the criteria for lending.
  • In view of the above, Sprite can provide you with the appropriate employer references for Banks, landlords, etc.
What PAYE Taxes and Deductions can I expect to pay?

Taxes

All employers should pay their employees through what is known as Pay As You Earn (PAYE) Taxes and your tax contribution is deducted according to your tax code each time that you are paid. Your taxable income will be reduced when you claim expenses and the Inland Revenue, not Sprite, dictates what expenses you can claim. Tax is deducted at the rate of 20%, 40%, or 50% depending upon your weekly earnings. Further information about current tax bandings can be found here.

National Insurances (NI)

There are two classes of National Insurance: Employers NI and Employees NI. Both will be deducted from your overall agency receipts when working through a company like ours, but only Employees NI will be deducted from your gross pay. We know this sounds confusing, but it can be explained as follows:
While you are negotiating with an employment agency, you should be offered two different pay rates: one to be paid directly through the agency's payroll, and another, higher rate to have your pay processed through a company like ours. The lower rate will apply if you opt to be paid directly by the company, because they themselves will be liable for the Employer's NI. The higher rate is offered to be paid through Sprite because the employment agency is passing the employment cost to Sprite, who will deduct this and pay it to HMRC as part of the process in calculating your gross pay.

Annual Self-Assessment Tax Return

If you are requested by HMRC to submit a tax return, you must declare the income received from your employment with Sprite. We will provide you with a P60 (End of Year Certificate), if you are employed by Sprite at the end of a tax year, or we will have provided you with a P45 (a reference code of a form providing employee detials of eaving work) which shows your earnings and tax deductions required for completion of your self-assessment tax return.
Although we do not prepare the tax return on your behalf, we can help you through our affiliate company IN-SYNC Tax LLP, who can help provide you with a self-assessment service. Contact them on 01252 704 030, or email: info@in-syncgroup.com.

 

When will I get paid?

Sprite will chase your payments from the Agency as soon as we receive your timesheets. After checking all details, paying tax on your behalf and deducting a small margin, you will get paid on the agreed day (usually every Friday).

Why do I have to pay Employers' National Insurance (NIers)?

Technically, you do not pay Employers National Insurance (NIers), but it is deducted and paid from the agency income that Sprite receives for supplying your services. The rate that Sprite negotiates with your agency includes all employer-related costs, including holiday pay and employers national insurance. Employment agencies often refer to this rate as the limited company rate, and this rate of pay is higher than if you were being paid directly by the agency. Sprite deducts NIers, and pay this across to the Inland Revenue before we calculate your pay - which is the rate that Sprite pays you, not the rate that Sprite receives from an agency.

Why was I offered a higher rate of pay to be paid through Sprite, rather than being paid direct by my agency?

It should have been made clear to you that any enhanced rate includes a number of costs associated with direct employment - namely the employers' element of national insurance and paid holiday entitlement. The key point to note is that the PAYE rate the agency quoted includes the amount you will be paid, plus the costs of employment. In other words, the rate quoted is actually the rate at which Sprite will charge for your services, rather than the rate we will pay you.

Not sure which route to take?

Get in touch with our Customer Services team to find out more

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