FAQsWe have compiled a list of some of frequently asked questions for contractors which is continuously updated. If your question doesn't appear, please email us and we will be happy to help you.
1. What is an Umbrella Company?
An Umbrella company is a company that acts as employer to independent contractors who work under temporary contract, usually through specialist employment agencies. It allows contractors to have all the benefits of contracting without the concerns of IR35 or the hassle of running their own limited company.
2. How does ICS operate?
You sign up as an employee of ICS Ltd. We sign a contract with your agency (or end client) once you have agreed the terms of the contract. Your contract starts, you submit your timesheet and expense claims. We invoice the client, who then pays us. Once funds are received we deduct the appropriate amounts for tax, national insurance, and the administrative fee, then we make payment directly to your account.
3. What makes ICS different?
We offer a straightforward friendly service that is second to none. ICS is supported by qualified accountants and taxation specialists that have extensive Revenue compliance experience. This ensures that you have access to accurate and professional advice, eliminating any potential liabilities.
4. What benefits does this solution provide?
We provide a completely 'hassle-free' solution, with no 'hidden' costs.
5. What is an approved dispensation?
An agreed dispensation scheme is an agreement between HMRC and an Employer (Umbrella), allowing the Employer to reimburse specific expenditure at approved rates, without entering the details on their paperwork such as P11Ds. It is designed only to reduce the Employer's paperwork, not to allow expenses to be paid at daily rates regardless of whether or not receipts are produced by the contractor. Dispensations can be and often are abused, thus leaving a contractor with a potential liability.
ICS does not operate a dispensation arrangement but we do reimburse any 'bona fide' expense claims supported by receipts. With proposed legislation by HRMC to enforce greater compliance from Umbrellas, ICS is leading the way on absolute expense compliance with no exposure for contractors to future liabilities
6. How does ICS help me avoid IR35?
Being an employee of ICS, you will not fall under IR35 rules. We will deduct income tax and national insurance before you receive payment from us.
7. What happens after I register?
Your initial registration can be completed by you online when we will send you the Employment Agreement and other information in your personalised Welcome Pack. You will need to provide your account manager with a contact name and number for your agency/client and we will contact them and arrange the necessary paperwork.
8. Is there a set up charge?
There is no set up charge. You will only be charged when your timesheets are processed and when you are paid.
9. What do I do when my contract ends?
We will contact you two weeks prior to the end of your assignment to determine your future contract opportunities and to arrange a new contract with your current/new agency or end client.
10. Who do I contact if I have any questions before or after I join ICS?
You can contact your Account Manager or the administration team by calling 0870 486 8830 or by email. Our phone lines are open between 09.00 and 17.00 but we are more than happy to talk to you at a time that is more convenient to you outside of normal office hours, just email us to make arrangements.
11. How much does your service cost?
Our fees are fixed based on your choice of payment terms. Please see Administration Fees section for further information.
12. What expenses can be claimed?
By joining ICS Ltd you can reduce your tax and NI liabilities by claiming back Inland Revenue approved expenses. We are happy to advise you on the details of these expenses.
13. What do I do with my timesheets?
Both weekly and monthly authorised timesheets should be sent on the same day as approval to us by fax 0870 486 8890 or by email to invoicing@Idealcontracting.co.uk
You must also fax/email copies of your timesheet to your agency/end client.
14. What do I do with my expenses?
Please print off the expense report and send this with the original receipts for every expense item included to our office at:
ICS Limited 3 Henley Way, Doddington Road, Lincoln LN6 3QR
Please note that we will be unable to reimburse you for expenses until we receive your receipts. We suggest that you retain photocopies of your receipts.
Please contact us regarding business expenses that will be reimbursed by your end client.
15. When will I be paid?
We run payroll every day which allows us to pay you as soon as we are in receipt of funds from your agency/client.
16. How am I paid? How will I receive my payment?
We pay by BACS. When a payment is processed by BACS, it takes 2-3 working days to clear although payment to some banks will be received on the same day. We are able to transfer your money by CHAPS for an additional charge; please ask our administration team for more details.
17. How do I know that my pay is correct?
When you are paid, you will receive a payslip showing all the details of deductions and earnings. You can also call our accounts department to verify your pay if in doubt.
18. What happens with my VAT, PAYE and NI liabilities?
ICS will take care of all your VAT, PAYE and NI liabilities. VAT, PAYE and NI will be deducted and paid to HMRC by us.
19. What if I decide to leave your service?
If you decide to leave ICS, please be guided by the terms of your Employment Agreement. We will collect all outstanding funds and make a final payment to your bank account. We will then issue you a P45. You can join us again at any time.
20. What insurance cover do you provide?
£5 Million Public Liability, £2 Million Professional Indemnity, £10 Million Employers Liability. As an employee, you will be covered for all necessary insurance to be able to perform your duties. These insurances are valid for the duration of your employment with ICS Limited. All insurances are included in our fixed service fee.
21. Do you provide reference letters for financial institutions?
Yes. ICS Limited will provide reference letters to financial institutions for all of its employees free of charge.
If you have any questions which are not included in our FAQs then please contact us on 0870 486 8830 or email us at enquiries@Idealcontracting.co.uk for further information.