For certain clients, you may have the option to be paid PAYE through Worksome on your contract, which means we will handle your tax & NI deductions before payments are made to you. It's important to note, our PAYE service is setup by your client on a contract-by-contract basis. Please find the steps below:

Adding your PAYE Settings in Worksome
​Frequently Asked Questions

To be paid PAYE through Worksome, there are some settings you will first need to add in your account.
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​1. Your Business Entity
In your Settings in Worksome, set your business entity as below.
​No setup yet + select yes to working with PAYE ✅

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2. Your PAYE Settings
Once you have completed the above, you'll unlock a new PAYE Settings page in Worksome. You will need to fill in all required fields here, to ensure you are taxed correctly on your payments:

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And that's it! Your client can now offer you a PAYE contract (see steps below). You will receive a 'KID' (key information document) with your contract, which will provide you with an estimated financial breakdown from your bill rate to an anticipated net pay (after deductions). You can also find some more PAYE FAQs at the end of this article.
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We can operate in this way, for contracts you have with our enterprise clients on Worksome. If you're unsure whether your client fits this criteria, feel free to message our friendly support team 🤗 Just hit the chat button in the bottom-right corner.

There is currently no fee for using Worksome's PAYE service.😊

No, we don't need you to send us your P45 as we will use the answer you provide on for the HMRC starter form question in your PAYE settings.

No, this is not necessary. If you need to run the contract using Worksome as PAYE, you'll have to let your client know that you wish to do so, and they then can follow our guide to set this up when offering you the contract.

Your tax code is used by your employer, in this case, Worksome or pension provider to work out how much Income Tax to take from your pay or pension. HMRC will tell us which code to use.

If any changes need to be made to your tax code you will need to contact HMRC directly. Once changes are made HMRC will notify our payroll department.

In your PAYE settings, you'll see you have a Starter Form question to answer, to let us know your current employment status.

If you are unsure of your starter form answer, we would recommend speaking with HMRC or your accountant to confirm. As what you input here will be used on your payroll with us, and could affect your tax deductions. So if unsure, check with the experts just to be sure! 📝

If you choose to use our PAYE service for your contract, this means we would be responsible for deducting employment taxes & NI contributions on your payments - the standard tax brackets for your employee deductions can be found on HMRC's website.
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Depending on your client, we may need to deduct further employer costs of 14.3% from your Charge Rate. This calculates as the Employers NI at 13.8% and Apprenticeship Levy (AL) at 0.5% and would in effect reduce your Booking Fee. These standard PAYE deductions, as per HMRC, are the same deductions you would incur with any Umbrella company.
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Whether or not we have to deduct these employer costs, will depend on the client you are working with. Some clients are willing to cover the cost of employer's contributions, and others are not. So it will entirely depend on your client, and their approach to PAYE contracts. You will receive a 'KID' (key information document) with your contract offer, which will provide you with an estimated financial breakdown from your bill rate to an anticipated net pay, and will detail all expected deductions as above.
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You can read more here.

If you disagree with paying the employer tax contributions from your charge rate, you will need to discuss this with your client directly, as it is their decision.

Your employer is required to pay employers tax contributions (NI & AL), but your employer is also free to change the rate they are ready to offer you. In many cases, the employer is forced to reduce their final rate (your gross pay) to make room for additional hiring costs due to the change from independent contractor to PAYE. Generally, the additional costs associated with the PAYE setup has to be covered by either your client, yourself or shared among you. This is based on whatever agreement you have negotiated with your client and their policy on this matter.

Any changes to your contract rate need to be agreed between yourself and your client. And whatever final rate you agree on can be added on your Worksome contract by your client.

You will be paid as per the contract payment terms with your client. You can find this in your Worksome contract for the job, under "payment terms":
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Payment terms are typically either 14, 30 or 60 days, but can be a different time frame as it depends on what your client has agreed with Worksome.

When using our PAYE service on a contract, you will be paid directly to your bank account, which you have provided in your Worksome settings 💸
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It is entirely your responsibility to make sure your bank details are up to date in your Worksome settings. You can check / change your bank details here: https://use.worksome.co.uk/profile/edit#bank-setup

After 3 months of working with Worksome on payroll, we are legally obliged to auto-enrol you into a company pension plan. Our chosen pension provider is the government backed NEST. Should you choose to, you can opt out of NEST and the process to do so will be in their enrolment letters they will send you upon enrolment.

It will not be possible for us to contribute to your private pension as it would be impossible to manage multiple pension funds. But if you choose to, you will be able to opt out of NEST, which will be detailed in the letters you will receive from them upon enrolment (after 3 months of being on payroll through Worksome).

As per UK law, all payroll employees are entitled to 5.6 weeks paid holiday each year. This amounts to 28 days for contractor workers (5.6 times the standard working week of 5 days = 28 days.) If you work fewer days per week, or for just a few months out of the year, for example, then your holiday pay entitlement would be calculated on a pro-rata basis. Further details from HMRC and how part-time hours will affect your entitlements can be found at https://www.gov.uk/holiday-entitlement-rights The financial impact your holiday pay allowance will have on your net salary will be presented and accepted by you on a Key Information Document. A copy of your Key Information Document can be viewed at all times within your booking details on the Worksome platform.

The default position for Worksome is to automatically ‘roll up’ your holiday pay in every pay run, meaning it is subject to income tax & NI deductions like the rest of your salary. The benefit us ‘rolling up’ your holiday pay is that you will have the funds to cover your holiday allowance in your bank account as soon as it has been earned by you.
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We will also offer you the chance to manage your holiday pay through the ‘accrued method’, where Worksome retain you holiday allowance until such time as you request it from us. The offer will be made shortly after you have started working through us but you can migrate over at any other time by emailing us at payroll@worksome.com. All details around your holiday pay, whether rolled up or accrued, will be detailed in the payslip you receive after every payroll. If you have any further queries about payroll calculation it might be worth you speaking with an accountant or a tax advisor. The rules with HMRC are complex and they are able to advise you on how holiday pay works when on PAYE.

If you are on the ‘rolled up’ method the simple answer is, you don't, you receive holiday pay as part of your salary, meaning we retain no balance for you.If you choose the ‘accrued method’ you must email payroll@worksome.com to request the amount of holiday balance you would like us to release at that time. You should not enter any holiday dates on your timesheet or bill in Worksome when taking a day off. Instead, you should leave that day blank.

You would receive statutory sick pay at the government stipulated rate of £95.85 per week (£19.17 per day) from the 4th consecutive day of leave. The UK government does not refund this cost making it an additional charge to the employer and is why all PAYE/Umbrella services operate this way.

You can follow our guide to submitting expenses here.
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Please note that in order to be paid gross for your expenses on a PAYE contract, you will need to ensure that you attach the expense report to a payment request along with time worked. Submitting an expenses only payment request on a PAYE contract will result in it being taxed.

If you didn't find what you were looking for, check out the rest of our FAQs, full of articles and tips on all things Worksome.
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