Outsauce Financing Ltd

Transcription

1 Outsauce Financing Ltd Operating Manual - Dec 2012

2 Table of contents Welcome Introduction 1. ORION 2. Procedures leading to first transmission 3. The Service 4. Outsauce Contracting 5. Induction 6. Deadlines 7. Timesheet Input and Timesheet Validation 8. Client Contracts 9. Insured Credit limit setting New Client 10. Funding limits & Uninsurable limits 11. Advance payments & Client Retentions 12. Applying for a higher insured credit limit 13. Sales Ledger payment terms 14. Sales Ledger 15. Chase Cycle 16. Candidate set up and maintenance 17. Candidate payment methods 18. Reports List of those available from ORION 19. Availability for the week 20. Example of availability calculation 21. Holiday Pay 22. Investment Account 23. VAT Retention 24. Example of VAT Retention 25. Ancillary Charges Appendix 1 Appendix 2 Appendix 3 Appendix 4 Client Credit Application Form Pay Input Form Permanent Candidate Appointment Note Orion New User Request Form

3 Welcome to Outsauce Financing Ltd Our Commitment to you We are delighted to welcome you to your Outsauce Financing Ltd Complete Financial Outsourcing ( CFO ) facility and have written this manual to enable you to use the facility quickly and accurately. Outsauce Financing Ltd will provide a comprehensive back office service enabling you to concentrate on building your business. The service will include paying the Candidates, invoicing the Clients, credit insurance and sales ledger management. We will also provide supplementary services such as Accounting & Bookkeeping if you have selected them. Our automated system ORION has been designed to make the operation as painless as possible, ensuring that you have a service that is timely, secure and accurate. With reports available at the touch of a button and our support staff dedicated to high service standards, we know that you will succeed in growing a successful business, safe in the knowledge that all your back office needs are catered for. Outsauce endeavours to make our partnership one which will grow together for years to come. Our joint emphasis will focus on service and communication to ensure that you are satisfied every step of the way with your decision to use Outsauce Financing Ltd. In conclusion, we hope that you find this manual a useful guide to the services that Outsauce Financing Ltd offers. 1. ORION Orion is Outsauce Financing Ltd s web based automated processing system.

4 It works through simple window applications and drop down boxes to enable your business to input data quickly and efficiently. Orion caters for: o o o o o Input of Candidate details Input of pay rates Input of charge rates Timesheet input weekly Submission to Outsauce A simple Candidate input form is provided (see section 18) to ensure you have all details necessary. Input of pay and charge rates ensures that you have control. Timesheet input ensures that Candidates are paid accurately and that invoicing is correct. As you input timesheet hours you will be able to see a gross margin calculation to ensure you have control. Submission to ORION then allows Outsauce Financing Ltd staff to validate your input to provide a second source of accuracy. The data is then processed and reports are available online within a few hours, ensuring you have up to date information when you need it. Our dedicated team will provide full training and telephone support. To authorise ORION users in your consultancy/business, please complete and forward Appendix 4 of this Manual to Outsauce. 2. Procedures leading to first transmission You will have completed and returned the following documentation:- Signed proposal form Signed CFO Agreement CFOA Debenture Personal Guarantees Board Minutes You will have provided the following information:- List of the Clients (and their limited company registration number) you wish us to work with, along with a requested credit limit for each one Copies of business insurance certificates Business Plans or statutory accounts Copies of your terms and conditions Evidence of payment for PAYE and VAT Primary ID - copy of passport or driving licence for all active directors and address verification such as a utility bill Evidence of the required regulatory approval/licence for your business as necessary Your consultancy/business is now ready to be registered on ORION by our Sales Administrator who will contact you with a proposed effective date of commencement for the facility (date when you may first transmit).

5 The list of Clients you have supplied will be risk assessed and a credit limit will be applied to each one where it is possible to obtain credit insurance. Outsauce Financing Ltd will then enter these details onto ORION ready for you to use. Please see the credit limit setting section of this manual section 9 for more details and what to do if an insured credit limit is not available to you. All information supplied to Outsauce Financing Ltd will be treated with the utmost confidentiality and, where applicable, in accordance with the Data Protection Act(s). 3. The Service The facility provides all of the services below:- Validation of input hours from the timesheets received Validation of Appointment Notes Processing of the data for each Candidate submitted to Outsauce within the deadlines defined in section 19. Deduction of tax and employee s national insurance contributions and the calculation of employer s national insurance contributions. Payment by the specified time to the HMRC of the deductions each month. Production and posting of payslips or notification of pay to Candidates each week on a Wednesday. Payment by BACS to the Candidate s bank accounts for cleared funds on a Friday of each processing week. Raise sales invoices and send to the Clients. Attaching a signed timesheet to each invoice and posting out to each Client. Updating the sales ledger. Providing credit control services within terms set. Resolving disputes with the aid of the consultancy/business to ensure timely payment. Providing weekly availability statements via ORION. Providing Investment account and discount charge information via ORION. Provision of credit insurance subject to availability. In respect of paying Candidates subject to PAYE, Outsauce Financing Ltd acts as a payroll bureau and warrants to the consultancy/business that it will undertake to operate PAYE in respect of any payments made to Candidates on the consultancy/business s behalf under the consultancy/business s PAYE reference number. Outsauce Financing Ltd can also provide other services such as company secretarial, bookkeeping, management accounts and full financial advice. Please ask for a brochure containing our complete range of products. 4. Outsauce Contracting Whether contractors want to gain work through a Consultancy/Business working on CIS Card or increase earnings by working through a Personal Trading Company (PTC), Outsauce can help. Who are Outsauce Contracting? Outsauce Contracting are experts in the field of external payroll services helping individuals and companies maximise net earnings. A PTC is a fantastic, yet straightforward concept. Outsauce Accounting has formed a large number of limited companies, which are collectively referred to as PTC s. Each of these companies can be transferred to the selfemployed candidate who becomes the sole director and controller of the company. Outsauce Accounting can supply the accountancy and company secretarial services to the company removing the administration from the director/candidate. The director/candidate of the PTC will receive a mix of directors fee and dividend with substantial benefits. What are the benefits? The most obvious benefits from using a PTC are that net earnings can be increased substantially along with reduced administrative obligations and employees of a limited company are entitled to claim expenses incurred in connection with work.

6 Working through a PTC enables weekly expenses to be offset against tax. This further reduces tax liabilities and increases take home pay. These include: Travel Accommodation Work Clothing & Tools Other Costs But also: Personal accident insurance that we automatically provide Payment into your bank account each Friday Completion of your tax return at a specially discounted rate for members (costs covered in weekly fee provided 6 months minimum use of PTC) Tax advice Outsauce s Fee Outsauce will charge the PTC 26 per payslip. The 26 is net of VAT because the VAT can be offset against VAT chargeable to the PTC. Outsauce s fee includes processing of expenses, a complete payslip; dividend calculations and associated tax vouchers, all limited company administration and all year end documentation such as P60.In addition there is a 4 insurance charge for the statutory insurances of Employers Liability and Public Liability plus Personal Accident. Which agencies can I use & what if I move agencies? An individual is entitled to work through any Consultancy/Business or Contractor, provided that they are willing and able to pay us on time and on behalf of the PTC. Outsauce requires full details of the Consultancy/Business or Contractor before we can enter into any agreements. If the Consultancy/Business or Contractor is new to Outsauce Contracting, we will contact them to establish a working relationship. There is no additional charge for changing agencies or Contractors, but Outsauce must be informed. Outsauce Contracting Ltd Outsauce Contracting Ltd is specially designed for CIS workers. For a fee of 3% of the weekly pay (subject to a minimum of 10) or a fee agreed with your agency. Payment will be made into bank accounts every Friday along with payslips. CIS statements will be issued on a monthly basis. How do I Join? Contact Outsauce Contracting on Induction to Complete Financial Outsourcing Outsauce Financing Ltd will inform you of your key contacts in the office and their full contact details. You will be allocated a Client Relationship Executive who will contact you to book an appointment to either come to your premises or for you to come to our offices for full training on how to use the system. We also offer training via telephone if this is more convenient. As a part of this Operations Manual Outsauce Financing Ltd have provided you with all the forms you will need:- Client Credit Application Form Appendix 1 Candidate Input Form for PAYE and Contractors Appendix 2 Permanent Candidate Appointment Note Appendix 3 ORION - New User Request Form Appendix 4

7 You will also need certain HMRC forms for each of the Candidates, which should be submitted to Outsauce Financing Ltd before you can include them in a processing run. Links to the HMRC forms are provided below: P46 (for completion if the Candidate does not have a P45) P38(S) (for completion if the Candidate is a student) After your initial training, your dedicated Payroll Administrator will be available Monday to Friday 9.00am to 5.00pm to give you assistance by telephone. Please do not hesitate to call should you encounter a problem. Your Client Relationship Executive will hold overall responsibility for your relationship with Outsauce Financing Ltd. 6. Deadlines Deadlines MUST be adhered to in order for the processing week to run as smoothly as possible and ensure that all payments are made in a timely accurate fashion. ORION INPUT BY BUSINESS Input of new Candidate details Input of timesheet Copy of inputted timesheet forwarded to Outsauce Financing Ltd (for validation) Deadline 1pm Monday Deadline 10am Tuesday Deadline 1pm Tuesday Any unsigned timesheets will result in the relevant Candidates not being paid. New Candidates should be entered onto ORION as soon as you have them and at the latest as indicated above. Please note that, when payroll processing takes place, the ORION input screens will be temporarily frozen. Should details be entered after this cut off there is no guarantee that the data will be processed and a charge of 5.00 per Candidate shall be made for those that are processed. See Section 25. Payslips will be posted out to Candidates on Wednesday. Invoices will be posted out to Clients on Thursday/Friday of each week. Reports will be available online on Thursday/Friday. Historical reports can be run online at any time.

8 ORION INPUT BY OUTSAUCE FINANCING LTD This service can be provided but at an additional cost as noted in Section 25. The weekly processing is a time sensitive process and the deadlines are stretched as far as they can be. If these deadlines are missed, delays in the service may be inevitable. If deadlines cannot be met, please consult your Client Relationship Executive who will be happy to advise any remedial action or accommodate your request, where possible. Step Quick reference guide to running a payroll with Outsauce Financing Ltd. Task Action Deadline Notes Set up Client Complete Client Application Form. Set up Candidate Weekly Processing Run Complete a Candidate Input Form and input details to Orion. This form should be kept by the Consultancy. Post P45/P46 to Outsauce. Input timesheet data onto Orion. Send copy timesheet to Outsauce. Before any Candidates are placed. By 1pm Monday of the week they are to be paid. Tax forms, copies of CIS cards, Contractor company certificates must all be received on the Monday, before the payroll is calculated. No later than 10am on Tuesday of the week to be processed. Faxed timesheets to be received no later than 1pm on a Tuesday. This form establishes a credit limit and sets an account for the Client on Orion. The original tax form MUST be received by First class post on a Monday to insure correct taxation for PAYE workers. Contractors must supply copy VAT Certificate and Certificate of Incorporation. CIS workers must present their CIS card and a copy forwarded to Outsauce. Timesheets can be faxed, posted as well as scanned and ed to the dedicated Payroll Administrator. Failure to supply timesheets could result in a delay in processing. Emergency processing due to missed deadlines may be possible after 10am Tuesday - please see Section Timesheet Input and Timesheet Validation Timesheets must be input to ORION within the timescales listed in Section 6. Any input after this deadline may not be processed until the following week, unless you wish to incur additional charges as noted in Section 25. As timesheets are entered, the ORION system will calculate the gross margin cash value and percentage. Upon completion of timesheet input, the signed timesheets should be forwarded to your Payroll Administrator within the given timescales. Any unsigned timesheets will result in the relevant Candidates not being paid.

9 Outsauce Financing Ltd will undertake timesheet validation to Orion. Upon validation, should the hours not correspond to the timesheet line entry, this timesheet will be rejected. You will be informed if this occurs. Please ensure you are available to correct the entry and resubmit. Outsauce Financing Ltd cannot guarantee payment in instances where rejections are not re-submitted by the time processing takes place. The input of a timesheet onto Orion which generates an invoice is considered a notification of assignment as per clause 2.3 in the Complete Financial Outsourcing Agreement. Permanent Placement Validation All Permanent Placements must be accompanied by confirmation of placement, in the form of a Permanent Placement Appointment Note specified in Appendix 4; we will also accept an ed confirmation directly from your Client. 8. Client Contracts Outsauce Financing Ltd provides a Complete Financial Outsourcing facility to time sheet based industries on an exclusive basis i.e. once engaged, all invoicing and debtor collection can only be undertaken by Outsauce Financing Ltd. Ie all trading must go through the facility. Before you agree a new Client contract you should submit a Client Credit Application Form (Appendix 1) to Outsauce s Risk Administrator, following the procedures contained in section 9 of this manual. The Candidates payroll cannot be funded under the CFOA unless you submit a new Client Credit Application Form before placing Candidates. The Candidate shall remain the responsibility of the consultancy/business. The Candidate shall supply either a timesheet or appointment note to the consultancy/business, which will be passed through to Outsauce Financing Ltd within the stipulated deadlines for the purpose of the CFO facility. 9. Credit limit setting New Client Before you place a Candidate into a contract you must provide Outsauce with all the details of the Client and obtain a credit limit. There can be up to three components of a credit limit: Insured Limit - Funding Limit - Uninsurable limit - this is applied for in all circumstances, is set by our insurance underwriters, and can form all or part of the total credit limit this is set at the discretion of Outsauce Financing Ltd, is made available where insurance underwriting is unavailable, and is on a full recourse basis to the consultancy/business i.e. the consultancy/business is fully responsible in the event that Client invoices are unpaid usually available for Government agencies, this is set at the discretion of Outsauce Financing Ltd, is made available where insurance underwriting is unavailable, and is on a full recourse basis to the consultancy/business i.e. the consultancy/business is fully responsible in the event that invoices are unpaid Any trading outside these limits will not be funded but must still be processed through Outsauce Financing Ltd. Whilst providing credit insurance is always the first priority, the total Credit Limit can therefore be made up of one or more of the above and comprise a mix of insured and uninsured Client debt.

10 Please complete the Client Credit Application Form in full and sign it. Missing/incomplete information will result in a delay and restrict your ability to include a Client into the facility. See Appendix 1. This is a chargeable service please see the ancillary charges section 25. Forward the application to Outsauce Financing Ltd s Risk Administrator who will apply and liaise with the credit insurance underwriters on your behalf. Your request can take up to three days to assess if referred for further investigation but normally takes a few hours. Client Credit Application forms received after 5pm Monday for transmission in that week will incur an additional charge. The Risk Administrator will contact you with the results of the Client Credit Limit Application. The insured credit limit obtained will usually be valid for 6-12 months; please check with the Risk Administrator. Insured credit limits may be varied or withdrawn as advised by Outsauce s underwriters at any time. A Notice of Credit Limit (example below), sent by the Risk Administrator, will inform you of Client credit limits from time to time. This will be ed to the address you have provided to us during the course of the application process. The credit insurance policy carries an excess to be borne by the consultancy/business in the event of a claim, unless you have opted for the excess waiver. Please ask for a current schedule for details of this. The New Client details will then be processed onto ORION by the Risk Administrator. Until entry has been made to ORION you will be unable to process a Candidate and we will not be able to raise an invoice.

11 EXAMPLE Notice of Credit Limit Date:XXXXXXXXXX Notice of Credit Limit, pursuant to Condition 8 and the Credit Insurance Schedule of the Complete Financial Outsourcing Agreement ( CFOA ) dated XXXXXXXXXXX between Outsauce Financing Ltd Limited ( the Company ) and XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX ( the Consultancy/Business ) Client: Credit limit applied for: XXXXXXXXXXXXXXXXXXXX XXXXXXXXXX We have reviewed the above request, in conjunction with our Credit Insurance underwriters. Based on the information presently before us, we are able to extend the following Credit Limit, until further notice: RETENTION LIMIT RATE % Insured limit* XXXXX XX Uninsurable limit** XXXXX XX Funding limit*** XXXXX XX CREDIT LIMIT XXXXX *non-recourse to the Consultancy/Business, subject to the provisions of Condition 8 and the Credit Insurance Schedule of the CFOA ** uninsurable usually reserved for Government debtors and granted at the Company s discretion form time to time and made available on a full recourse basis to the Consultancy/Business *** granted at the Company s discretion form time to time and made available on a full recourse basis to the Consultancy/Business Unless the Company in its absolute discretion agrees to the contrary, no Advance Payment in respect of the above (or any) Client shall exceed the Credit Limit then applicable to such Client. Please retain a copy of this notice for your records.

12 10. Funding Limits & Uninsurable Credit Limits From time to time where Outsauce Financing Ltd is unable to obtain an insured credit limit we may be able to set a funding limit for the Client. This is granted by evidence of payment history and the credibility of the Client you wish Outsauce Financing Ltd to deal with. At the discretion of Outsauce Financing Ltd, it is possible to continue business with the Client based on the following terms:- The funding limit granted should not be breached. If the limit is exceeded Outsauce Financing Ltd will require the account to be bought into order in accordance with the terms set before any more invoices can be funded through the facility. This will mean an advanced payment may not be made. The funding limit is the liability of the consultancy/business and will be granted on a full recourse basis only. All funding limits carry an advance payment retention see section 11. Uninsurable limits could be granted where a central or local government department or Consultancy/Business or any organisation controlled directly or indirectly by a government body or local authority is the Client. Examples of these could be an NHS hospital, NHS nursing home or local authority. Evidence that the Client fits into the above category is required before a limit may be set but it normally means that the limit will be granted and that the advance payment is unlikely to be subject to a retention. NB: Please note the Funding Limits will only be granted on the strength of your Balance Sheet, based on statutory accounts. A charge is payable for all credit limit setting activity please see section 25 Ancillary charges. 11. Advance payment & Client Retentions Outsauce Financing Ltd does not like retaining advanced payments but in some circumstances it is necessary. Advanced payment retentions and credit limit retentions are applied to the facility from either the outset of the contract or by individual Client under various circumstances: 1. Over the Insured Limit: Any client for whom the debt exceeds the Insured Limit will have retentions of 100% on the account e.g. 1,000 Insured Limit - 2,000 Debt balance = 1,000 Retention 2. Over the Credit Limit Any client for whom the debt exceeds the Credit Limit will have retentions of 100% unless a funding limit has also been granted. The amount covered by the Funding Limit will be retained at an agreed percentage, which will generally be 20%. 500 Insured Limit 500 Funding Limit Credit Limit 2000 Debt Balance Retention 100 Retention retained ( 1000 over the Credit Limit and 100 ( 500 x20%) for the portion of debt covered by the Funding Limit) 3. Disputed Invoice Any invoice which has been disputed by the paying client or Outsauce. Examples - Lack of signed timesheet, bad workmanship etc.

13 days aged Debt Any invoice which is 90 days or older from invoice date, will be retained at 100%. 5. Advance Payment Retention Where we make an advance payment on an invoice (generally Permanent Placements) at 50%, the invoice is shown as 50% retained on the Account Enquiry. The above are only examples of retentions that may be applied according to reviewed risk within the facility. Your Client Relationship Manager will discuss these in more detail dependant upon the circumstances presented. Retentions are credited back to the facility upon full payment of the debt being received. It is therefore advisable to reduce the terms offered to such Clients to ensure that your cashflow is preserved. This is not exhaustive and there may be other reasons for retention. In all circumstances Outsauce Financing Ltd will endeavour to discuss the issues with you before retention is levied. 12. Applying for a Higher Insured Credit Limit PLEASE NOTE THAT YOUR CLIENT WILL BE REASSESSED BY THE UNDERWRITERS WHICH MAY RESULT IN THE INSURED LIMIT BEING DECREASED OR INCREASED. Complete the Client Credit Application form, ticking the box to indicate that this is a secondary/revised application. Forward this to the Risk Administrator. The process will mirror a new Client credit application and will be chargeable - please see section 25. Please be aware that this charge is applicable even if the result is nil. The Risk Administrator will contact you with the result of your application. ALL LIMITS ARE AUTOMATICALLY REASSESSED FOR RENEWAL AFTER 3, 6 OR 12 MONTHS, DEPENDING ON THEIR NATURE AND A LIMIT APPLICATION CHARGE WILL BE MADE 13. Ledger Payment Terms The sales ledger can operate with payment terms of 7 days, 14 days, 21 days and 30 days. Payment terms outside of the above will only be accepted by prior written agreement from Outsauce Financing Ltd. Payment terms that exceed 30 days may fall outside the insurance cover and will therefore revert to a recourse basis. Recourse will automatically be applied which means the consultancy/business will be liable to pay the debt until such times as the Client pays Outsauce. Under these circumstances Outsauce Financing Ltd will not be able to offer an advanced payment on this Client until terms are bought in line with Outsauce Financing Ltd s Standard terms. Please see the Client retention section, below. Any indication that is given to Outsauce Financing Ltd that a Client is experiencing difficulties with payment terms will be reported to the insurance underwriters and may result in cover being withdrawn for future invoices to that Client. Outsauce Financing Ltd credit control will collect upon the terms you have specified. Please ensure that your Clients are aware that invoice collection activity will be geared to ensuring terms are met. Outsauce s chase cycle is defined in the next section. If you are unsure about any aspect of this please do not hesitate to contact your Collections Advisor.

14 Debtor s reports are available through ORION and can be printed as and when necessary. Please ensure you print monthly reports for the benefit of your auditors or other advisors to keep your own records up to date. Please be aware that future requests for such information is chargeable as per section 26. Your support in making sure payment terms are adhered to by using this reporting facility is welcomed. 14. Sales Ledger A number of enquiries and reports are available through ORION to analyse the sales ledger. You will be able to view each Client account to see what is outstanding at any time and look at cash receipts on screen. The Aged Debtor reports will detail the insured limit for each of the Clients, so that you can understand your level of exposure. Please feel free to review the sales ledger with your designated Collections Advisor on a weekly basis. Reports are available through ORION showing summary and detailed debtors instantly. You are free to run the reports when you need them 24 hours a day. The sales ledger will be updated online by Outsauce throughout the weeks as transactions are posted. Please ensure that you print off at the end of every month a copy of the sales ledger, for your records. As this information is available online for 24 hour access, we do not retain any historical information of the detail required.

15 15. Outsauce Financing Ltd Sales Ledger Chase Cycle Payroll Credit Control Client / Debtors Finance Before inv is due Customer Invoice Sent - Verification Invoice Received Pay Invoice Yes Receive Payment 1 to 10 Days After due date Send Copy Invoice 1st Contact Client A selective process based on payment history. Day 1-5 Dispute Resolution Continued Client Contact 1st Chase letter - Reminder 6-10 days No Received Inv? No Pay Inv? Yes days after due date Dispute Resolution Continued Client Contact - At least 2 calls Contact with Agency - Advise of outstanding clients 2nd Chase letter - Urgent Request days 26 to 42 Days After due date Dispute Resolution Continued Client Contact - At least 2 calls Direct Contact with Agency to make aware of situation & CONTACT CRE TO INFORM OF OUTSTANDING ACCOUNT Confirm both of above with . Send Final Demand giving 7 days before legal Proceedings DAYS (Notify Risk) After 42 Days Diarised Litigation call - Manager/Supervisor - Expiry day 7 day letter Pass Doc's To Legal Dept - Day Notify Credit Risk Insurers - Day Covered By CRI? * All chase cycle letters will be sent on a Monday due to the manual process the first "Reminder" letters will take upto 2 days to be sent due to volumes. ** Agencies will be communicated with at least fortnighlty under this chase cycle. *** This is subject to the Invoices being produced and sent on the correct working day

16 16. Candidate Set Up & Maintenance Complete a Candidate Input Information Form for each Candidate Appendix 2. This will provide all the details necessary for input to ORION. Once entry to ORION has been completed the original form which will be signed by the Candidate should be retained at the consultancy/business for audit by the HMRC and Outsauce from time to time. Original P45/P46/P38 should be posted to Outsauce Financing Ltd as soon as the Candidate is registered. The Candidate Input Information Form also needs completing for Contractors and Personal Trading Companies. Please fax certificates of incorporation and VAT registration to Outsauce Financing Ltd before payment is expected. For CIS candidates that will need verifying with HMRC it is important that all the relevant information is input to ORION otherwise they will default to a higher rate tax when verified. The CIS number should be Outsauce Associates and the candidates UTR should be entered in the UTR box. The candidates proof of identity should be confirmed by the agency and copies of the documents faxed to Outsauce Associates ( ) For Gross Status clients the UTR number needs to be faxed to Outsauce Financing Ltd so that they can be verified. Outsauce Financing Ltd will not be able to provide the service without the correct information being input to Orion. Please ensure that all relevant information is faxed/ ed through as soon as it is available to avoid non payment. Where Candidate information needs to be amended please complete the Candidate Input Information Form, ticking the amendment box and placing the amended details only into the relevant boxes. This should then be entered to Orion. If a Candidate has arrived for work from an authorised EU country the consultancy/business must comply with Home Office regulations. All records must be held at the consultancy/business for inspection by the HMRC and Outsauce as necessary. A copy of these guidelines may be obtained from Outsauce Financing Ltd should you not have them. Compliance in this area is the sole responsibility of the Consultancy/Business. You must not place or continue to place a Candidate if all criteria of the Home Office regulations have not been adhered to. 17. Payment Methods Outsauce Financing Ltd s preferred method of payment is via the BACS system. Candidates must have a bank account to facilitate this. BACS payments will be made each week so that the Candidate receives cleared funds for the Friday of each processing week. The Candidate will receive notification by payslip or payment notice on or before payment is credited to their account. Under no circumstances can cash payments be made to yourselves for staff wages or to your staff. Should it be necessary to recall a BACS payment, a fee will be charged for the recall and reissue of a BACS payment. If the payment is not being reissued via BACS and a cheque is requested a fee will also be levied as per section 26 of this manual. Cheques will be issued where bank accounts are not held for the first week s payroll only. Where cheques are required to be issued after the first payroll, a charge as per section 26 will be deducted from the consultancy/business availability each week. Should cheques be lost in the post or the address that was given to us be incorrect we will reissue but the charges associated with stopping the cheque and reissuing as per section 26 will be deducted from your facility.

17 18. Reports Reports available from ORION:- Accrued Holiday Retention Aged Debtor by details Aged Debtor by Terms Cash Received Contractor Payroll Report Credit limit by Client Credit Retention Analysis Daily Investment Account Breakdown Debt Exposure by Client Disputed Timesheet Items Drawdown Summary Gross Margin Gross Margin Net of Fees Gross to Net Payroll Report Invoice Listing Payment by BACS Listing Payment Cash Breakdown Listing Payment Cheque listing Payment Credit Transfer Listing Updated Candidates VAT Schedule In addition to the above you can carry out an Account Enquiry for the following key information: Investment Account Entry Review Invoice Entry Weekly Movement Schedule This list may be extended during further updates to the system if there are sufficient requests to do so. Please ensure that you print off some of the above reports as advised by your accountant for the completion of your annual accounts. 19. Available Drawing Amount for the week Available Drawing Amount This is the term used for the residual figure of all VAT-inclusive sales less CFO deductions in the preceding week and is available for drawing by you. You may request this amount each week by BACS on a Friday for Tuesday payment. Same day payments can be made but attract a charge see section 26. The calculation is: Gross invoices in the week Less the gross Payroll/Contractor payments Less gross service fees Less ancillary charges Less discount charge Less retentions Equals the Available Drawing Amount which may be drawn from the facility by the consultancy/business together with any surplus Available Drawing Amounts from previous weeks.

18 Weekly Movement Schedule terminology: Gross Sales - Total of the invoicing in the week including VAT. Gross Pay - Total of gross pay, employers national insurance and Contractor payments plus VAT. Retention - Any available amount held with in the facility during the processing week (see retentions within the manual) Retention Release - Availability released upon full settlement of debtor invoice following retention Discount Charge - A variable charge which is calculated on a weekly compound basis on outstanding debtors less availability not drawn down, using the Discount Charge Rate shown in the CFOA Schedule. The accrued Discount Charge is deducted from the Availability, usually each Thursday. Ancillary Charges - Any expense incurred during the processing week see section 25 Service Fee - Percentage agreed in the CFO schedule of gross invoicing payable to Outsauce Financing Ltd on the Thursday of each processing week plus VAT. Deductions refund - Amount of pay payroll/contractor deductions authorised in the week paid back to the consultancy/business. Available Drawing Amount - The amount of money available for you to request by BACS Friday of each processing week. For alternative payment methods please speak with your Key Contact. 20. Example of Availability Statement for VAT registered companies Gross Sales 5, Gross Pay ( 4,832.19) Gross Fees 4% ( ) Gross Margin VAT retention ( ) VAT retention release Discount Charge (.45) Holiday retention ( ) Release retention Client retention ( ) Release retention Deductions refund Availability Holiday Pay and Retention Legislation dictates a minimum number of days paid holiday per Candidate including bank holidays. Outsauce Financing Ltd can calculate this for you as an hourly amount for hours worked. A separate line showing the holiday pay rate will be itemised on the payslip provided to the Candidate. The calculation is a percentage of the gross hourly amount to the Candidate. ORION has the ability to retain holiday pay for staff and pay out the holiday upon request from the consultancy/business to ensure your gross margin stays consistent each week. A separate statement of holiday pay retention is available on line. Holiday pay retention is useful for businesses that pay Candidates on long term contracts that will take leave within the contract and wish to be paid while on holiday. 22. Investment Account The Investment account shows the amounts advanced to you in respect of invoices raised prior to our receiving payment from the Clients.

19 The calculation is based on the amount of advanced payment drawn against costs in the week i.e. Candidate pay, fees, availability drawdown. As soon as invoices are processed funds can be made available to pay Candidates and Contractors on Wednesday of each processing week. These are paid into the Candidate and Contractor bank accounts as instructed by your business. Outsauce Financing Ltd fees are calculated on the amount of gross invoices raised in the week and are charged to the account on a Thursday of the processing week. The availability is calculated and the decision is made by your consultancy/business to take all, some or none of the funds available. Remember the more you draw against the facility the more the discount fee you will pay. Receipts that are applied to the sales ledger are totalled daily and applied daily to the account. Any other payments and receipts are added into the investment account on the day paid or received. Your discount charge is calculated at a percentage above 3 month sterling LIBOR (London Inter Bank Offered Rate subject to a minimum of 2.5%) on the amount of outstanding debtors after deducting availability not drawn down and deducted weekly on the availability statement. The discount charge is calculated daily, compounded and deducted weekly from the availability statement. The Client payment terms affect the investment account balance so the sooner the invoices are paid the smaller the balance. Orion allows you to view these charges on a daily basis and the reporting facility will allow you to print this information from the system direct. For clarification please speak with your Client Relationship Executive. 23. VAT Retention VAT is calculated on the invoices raised. (Output VAT payable to HMRC) VAT is calculated on the service fees. (Input VAT claimed back from HMRC) The net effect is retained in the facility on a weekly basis. The monthly or quarterly total is added to the availability of the consultancy/business by way of a release of the retention when the liability becomes due. 24. Example of VAT retention VAT Gross Sales 5, Gross Payroll 4, Service Fees Gross Margin Net of Fees VAT retention (In simplistic terms the VAT retained is the VAT payable on the Gross Income Net of Fees.) If your business/ consultancy are exempt from VAT this section is not applicable.

20 25. Ancillary Charges The following charges are payable: DESCRIPTION PER ITEM Chaps fee New or revised Client credit limit request New or revised Client credit limit request to insurer Pay cheque 5.00 Stopping a pay cheque and reissue Stopping a BACS payment and resend/cheque Client cheque returned unpaid/represented 50.00/ Duplicate payslip Credit Note BACS rejection / Re issued BACS upon incorrect instruction Input of candidate information after deadline 5.00 Input of new Candidate data on behalf of the Consultancy/business 3.50 Amendment of incorrect data input by Consultancy/business 5.00 Amendment to invoice prior to posting to client 5.00 Tracing a payroll item If a transaction is required to correct an error of Outsauce Financing Ltd no charge will be levied. Exceptional Service Charges Charges for work carried out over and above the CFO Agreement DESCRIPTION PER ITEM Input of time sheets onto Orion system, after initial two weeks 2.50 of transmission, per person (Min 25) Late Client Application Form received after 5 pm Monday for 20 payroll transmission in that week Emergency payroll advance due to missed deadline. 15 Early processing of advanced payment, 1% of value, minimum 1% / Providing duplicate account information or responding to 25 requests for information / enquiries from your advisors e.g. Bank, Auditors, Solicitors, other third parties, minimum 25, per party Breach of Agreement Letter 25 Overpayment Charge 5% of sum requested 5% (Min 100) Exceptional Management Charge 500 per day 500 Direct Banking Charge (Calculated on the banked amount) 10% (Min. 50) Revised or new legal documentation 50 Obtaining Accounts from Companies House 50 Audit / Risk visits 250 Set up of additional accounts 50 Intra-year revision of Holiday Retention 50 Further requests that are exceptional and fall out side the remit of the CFO and Orion operating system are chargeable by negotiation with your Client Relationship Executive. The list above is not exhaustive and we will always inform you where possible of extra charges. Please note the above are subject to VAT at the current rate.

21 APPENDIX 1 OUTSAUCE CLIENT CREDIT APPLICATION FORM Please complete fully and fax to Outsauce on CONSULTANCY/BUSINESS CANDIDATE TYPE : (Please indicate ) Client Information: Limited Company Name Permanent Temporary Company Registration Number Sole Trader / Partnership name if not Limited Is Client VAT exempt? Y / N Is client in Construction Industry Scheme (CIS)? Y / N Client/Invoicing Address Post Code Telephone / Fax Number contact Contact Name Agreed Payment Terms (Default to 7 days if not stated) days Credit Limit requested Sales invoice type : please tick a box By Site One invoice for each site with all staff listed By Candidate One invoice for each candidate In signing the application below I agree to abide by the terms and conditions of the Outsauce Financing Ltd CFOA when dealing with this Client and have issued Outsauce s Standard Terms to the Client as required by the CFOA. Signed for the Consultancy/Business Name Position held in Company Date / /20 1. In order to obtain the credit limit required to cover the monthly turnover figure we may require additional information such as financial statements or management accounts. 2. If standard terms and conditions do not apply then a copy of the contract supplied must be forwarded. 3. A fee of 10 will be debited to your account in respect of credit applications even if no limit can be supplied For Outsauce use only Insured Limit % Input to Orion Uninsurable Limit % QA to Orion Funding Limit % Charge TOTAL CREDIT LIMIT Retention rate Notice of Limit sent Outsauce approval: Date

22 APPENDIX 2 - OUTSAUCE FINANCING LTD LIMITED Candidate Input Information The following information is required for each Candidate/subContractor: Consultancy/Business Name: NEW/ AMENDMENT Candidate Surname: Mr/Mrs/Miss/Ms* First Name(s): SubContractor: Address: Post Code: Date of Birth: National Insurance No: Tax Code: Date employment started Bank Details Name of account: Bank/Building Society: Sort Code: Account No: Rate of Pay: Hourly rate: Overtime Rate: Charge Out Rate: CIS Card Type: VAT Registered: Yes / No Limited Company Registration No.: Other Information - Please provide details, if known, of CSA deductions/family Tax Credits/Attachment of Earnings, etc. and attach relevant documentation for this. I the undersigned confirm that the above information is correct and that payments are to be made to the Bank/Building Society account as stated. I authorise this information to be passed to a third party for payroll purposes. Signed: Please provide P45 or signed P46/P38(S)

23 APPENDIX 3 -. Permanent Candidate Appointment Note <Date> On Your Letter Head <Name> <Company Name> <Address> <Address 1> <Address 2> <Postcode> Appointment Note Dear <Name> I am writing to confirm the commencement of employment of <Candidate Name> at <Client Name>. By signing and returning this letter you are agreeing to the terms and conditions of <Consultancy/Business Name> and confirming commencement of employment. Details - <Candidate Full Name> - <Client Name> - <Name of Interviewer> - <Date Employment Commenced> - <Agreed Salary> I <Authorised Signatory of Client> can confirm that the details outlined above regarding the employment of <Candidate Name> are correct and true. Signed - Printed - Date - Yours sincerely

24 APPENDIX 4 New User Request Form To be submitted to Outsauce Financing Ltd for approval prior to new user being set up Full Name Position Company Contact Details Telephone address Requested by Date Internal use only New User Type Business Outsauce User group assigned Businesses assigned w Approved by Date Entered on ORION Date User name Assigned User ref #