Contractor Handbook TOOLS

Transcription

1 TOOLS Contractor Handbook Contents Welcome to Parity Getting to Know Us Our Service Offerings Getting Paid Extending Your Contract A Little Help From Your Friends Our Commitment to Excellence Appendix A - Example of Contractor Invoice Appendix B - Example of Self Billing Invoice Appendix C - Example of Remittance Advice To find out more Call: Welcome to Parity Congratulations on securing your new contract with Parity. Whether you are a first time contractor or are an experienced consultant, we trust that this handbook will prove helpful to you throughout your time with us. Parity is a professional services organisation that helps companies to deliver increased profits by sourcing, delivering and securing the best people. We have been supplying contract staff to a wide range of industries since 1973 and have gained the knowledge and experience necessary to provide you with support and information vital to performing your new role successfully. We are committed to the provision of concise and relevant information to IT professionals, and to this end we have collated essential facts and figures about Parity and the services we offer that should ensure all of your questions are answered. However, should you have a query that is not addressed within this brochure, please contact your Parity consultant who will endeavour to assist you professionally and with integrity. Additionally, we appreciate and welcome any suggestions you may have on how we can improve our service and support to you. Parity is committed to providing the highest quality of service to our contractors, and wishes you the best of luck in your new role. 1

2 Getting to Know Us When you chose to take your new assignment through Parity, you entered into a contract with one of the industry s most highly regarded companies a company with a long track record of success, built on a first class reputation for service, value and innovation. Parity Resources is a division of Parity Group plc. Parity is a business and IT solutions company with over 40 years industry experience. Parity delivers a range of recruitment, business and IT solutions to clients across the public and private sector. With revenues approaching 100m, Parity provides an integrated service for contractors, candidates and consultants seeking their next assignment or career move, and has clients across the UK wishing to recruit skilled professionals. Parity works with its clients to bring out the best in their businesses. We draw on our experience to help organisations meet the challenges they face. Strong values mixed with personality make Parity a trusted partner for hundreds of clients across the UK and Ireland. Through specialised recruitment, we provide decision makers with the best candidates to drive strategies forward and focus on results. We aim to ensure that every customer, partner, employee and investor is in a position to achieve success. It s the combination of people from Parity and our relationship with our customers that makes the difference. At Parity, we are driven by relationships and live by our five core values: Professional Positive Progressive Passionate Proud Getting to know where we are Your contract will have been secured for you by a member of our team based at one of Parity s offices. This person remains your first point of contact for any concerns or enquiries you may have during the course of your assignment. 2

3 Our Service Offerings Parity consultants are dedicated to the task of understanding the resource requirements of our customers and securing the services of appropriately skilled contractors to satisfy them. We resource IT contract roles from junior operator to senior consultant for every sector of commerce, industry and government from a database of selected candidates. Our database covers all hardware platforms, operating systems, languages, ERP, RDBMS, ecommerce/ internet and technical disciplines, as well as providing a source of professional staff in engineering, finance and administration roles. Parity seeks to provide a highly professional service to both candidate and client. Assessed to the high quality standards of ISO 9001:2008 certification, we demonstrate that our management systems are continuously evolving, helping us to provide better services to our customers. Pioneering initiatives to encourage technical excellence and skills enhancement among the contracting community are key factors in Parity s development of a range of value added services. Parity s ability to identify and secure contract resource is complemented by an ongoing commitment to the welfare of our contractors. A balanced approach that addresses the requirements and aspirations of all our customers, be they client or consultant. When dealing with any organisation it is helpful to know who you should be speaking to when questions arise. We have put together the following list of key personnel who you may wish to contact during working hours. Since being established, Parity has enjoyed growth and success based on a proven ability to supply cost effective resource solutions we currently place contractors with many FTSE Top 100 companies most of them on a preferred supplier basis. Useful Contacts Alan Rommel, Managing Director a.rommel@parity.net Roger Antony, Chief Accountant r.antony@parity.net Laura McFarlane, Contractor Payments l.mcfarlane@parity.net Lesley Cook, Business Support l.cook@parity.net Clare Gurney, Business Support c.gurney@parity.net 3

4 Getting Paid Prompt and Accurate Payment Systems For every contractor, prompt and accurate payment of invoices is of paramount importance. We process payments monthly up until the last working Friday of the month. At Parity, we pride ourselves on the efficiency of our payment systems and we consider this vital function as much a part of contractor care as any other activity we engage in on behalf of those who work with us. We make no apology for addressing this issue in some detail and ask that you please take time to read through the following pages. Careful consideration of the payment cycle now will help us to administer your contract successfully in the months/years to come. What do Parity need to make prompt payment? Having accepted an offer and signed contracts, every contractor will want to know How do I get paid? Parity can only make payments to your limited company if we have received certain essential details and documentation. Should you not be able to provide all this information prior to commencing your assignment we require you to contact your Parity consultant before the first day of your assignment to discuss: Signed and completed contract paperwork A copy of your company s UK Certificate of Incorporation Limited company UK bank account details A copy of your VAT registration certificate (if VAT registered) which is available from your VAT portal A copy of your Self Billing Acceptance (if required) for which you need to be VAT registered A copy of your Certificate of Employers Liability Insurance (except where your limited company employs one employee only, in which case there are no statutory requirements to hold Employees Liability Insurance) A copy of your Public Liability Insurance A copy of your Professional Indemnity Insurance Proof of ID (being a copy of either a UK Passport; or EEA Passport; or National Identity Card; or UK Residency Permit) If you don t have any of these documents please contact your Parity consultant Proof of entitlement to work in the UK (as for Proof of ID above) Contact details of referees 4

5 If the end client requires Baseline Personnel Security Standard we require the following information prior to commencing work as requested in the Government Security Pack provided: Contact details of referees covering your previous three years employment and a character reference Completed Criminal Record Declaration Signed Official Secrets Act To process payment we need the above information plus: A completed timesheet authorised by the client (paper or electronic if you have been set up to process in this way) An invoice from your UK registered Limited Company (unless you have arranged selfbilling) Our Client Services Department may delay payment of timesheets received because they are still waiting for a missing (holiday period) timesheet to arrive. To make it perfectly clear when holiday has been taken, please submit a timesheet or timesheet entry marked zero hours worked for the holiday period taken. This will enable us to effect payment for the hours/days that have been worked without delay. Timesheets and invoices Where to send them - Your timesheets and invoices should be sent by to scannedtime@parity.net or by post to our Client Services Department, Parity Resources Ltd, 2 Bath Place, Rivington Street, Shoreditch, London, EC2A 3DR. Our preference is to receive timesheets and invoices via ; however, we are happy to receive hard copies where this is impractical. Should you be working for a client with the e-time option, the above does not apply. No matter how you choose to trade, payment cannot be made to you unless we have received your timesheets, duly signed by the client s authorised signatory. Please try to submit your timesheets to Parity in good time and as legible as possible. Holidays - Please inform us when you have taken some holiday. 5

6 Documentation The information below summarises the documentation you should be submitting to Parity during the course of your contract to obtain payment for contract services. Limited Company: Timesheets (or proof of time worked), invoice(s) quoting VAT number if applicable Limited Company Self Billing: Timesheets (or proof of time worked) indicating self-billing option if applicable Your invoice to us: Please submit your invoices in as clear a format as possible. Your invoice should include the following information: If you are registered for VAT, the VAT number must be clearly shown on the invoice. Failure to state your VAT number will result in non-payment of VAT The full registered name of your Limited company, (a complementary trading style is not sufficient), its registered address and invoicing address if different The company registration number The hours you are claiming together with the relevant hourly or daily rate consistent with your contract (Please refer to Appendix A on Page 15 for an example of a contractor invoice). Self-billing Your approach: Inclusion in the self-billing invoice scheme is optional though only available to you if you are trading as a VAT registered Limited company. We recommend the scheme to all who qualify as it is easy to administer and will save time, effort and paperwork for contractors who enter it. The principal advantage of self-billing is that there is no need to submit an invoice with your timesheet(s). You simply submit timesheets to receive payment for your services. Once we have received and processed your timesheets, the self-billing system will generate a Customs and Excise approved VAT invoice from your company to Parity. This self-billing invoice includes all the details that would have been shown on your payment advice and therefore replaces the payment advice as our notification of payment to you. Your company will receive payment in the usual time and manner. (Please refer to Appendix B on Page 16 for an example of a self-billing invoice). Expenses Claims: It is common industry practice for the end user client (our customer for whom you are undertaking work) to have internal procedures for reimbursing you with any approved expenses. In most cases you will submit expense claims direct to the client using the client s own expense forms. You would not normally submit expense claims to Parity unless you have specifically agreed in advance that you may do so. 6

7 If we have agreed that your expenses can be submitted direct to Parity, then please remember to attach copies of all relevant receipts to the client s expense claim form and make sure it has been authorised by the appropriate signatory. If you are VAT registered you should deduct any input VAT from your claims before adding output VAT to the total of all expenses. Payment and transfer of funds: Standard procedure for the majority of Parity contractors is to receive payment on a monthly basis by electronic funds transfer. Timesheets and invoices, (unless self-billing applies) in respect of each accounting period i.e. up to and including the last working Friday of each month, that are received during the submission deadlines of the following week. Our deadline for receiving timesheets and invoices is 23:59 hours on Wednesday for those sent via , and noon on Friday for those posted. Providing we have your signed contract and supporting documentation, cleared available funds will be at your bank on the following Thursday. We can ensure that funds will arrive at your bank via BACS, but thereafter your bank is responsible for applying your money to the appropriate account(s). Please note that payment will be delayed by one day when made within a week where affected by a Bank Holiday Monday. If you choose to use a building society account you must ensure that they will accept BACS payments for the type of account that you hold. It can take longer for funds to be applied to a building society account due to differing practices and procedures sometimes used by building societies. Payment advice: On request, we can a payment advice to let you know what amount will be crediting your account (Please refer to Appendix C on page 17 for an example of remittance advice). In order for us to payment advice to you, we first need an address and your authority allowing us to use the address. To take advantage of this service, please complete Schedule 3, Part A which is part of your Parity contract. Please note that we are unable to provide hard copy payment advice. The payment advice slips are ed by the Tuesday following the week of processing and they detail the following information: The hours you have worked The amount you are to be paid Your invoice number The week/date commencing (as per your timesheet(s) which the payment relates to) 7

8 Helping us to help you Change of details: If you change your address or bank account details while contracting for Parity, please inform Client Services at Shoreditch as soon as possible. Client Services will pass this information on to our Business Support department to update your details on our CV/ candidate database. Parity considers the prompt payment of your invoices as a number one priority, so please help us to maintain an efficient and speedy service. Who to contact regarding a problem: We hope that you now have an adequate understanding of our payment system and are confident that your hard-earned money will find its way to your bank at the proper time. Should you have a query or a problem with any aspect of our payment service please contact Laura McFarlane, Client Services on or l.mcfarlane@parity. net. If Laura is unable to take your call, any member of her team will be pleased to help you. Extending Your Contract Will your contract extend? Somewhere in the future lies the date when your new contract will come to an end, be it in three, six or 12 months or in five years time. Parity has given careful consideration to your needs as you approach the end of your current assignment whenever that may be. A Parity consultant will have been in regular contact with you during your assignment. Within four to six weeks of the contract end date, your Parity consultant will enquire of both you and the clients* intentions vis-à-vis extending the assignment e.g. do you, the contractor, want to extend your contract if the client wants to keep you on? There are numerous factors that determine whether a contract extends or concludes. Whatever the circumstances, Parity will be on hand to assist either to negotiate and administer a contract extension or to offer alternative contract opportunities. * Parity will not make such approaches where a client has advised Parity to take reactionary approach to extending assignments. The Parity website Candidates seeking a new assignment can enjoy direct access to Parity database of requirements by logging on to our website The website incorporates a host of interactive features designed to help you identify and apply for the right contract vacancy. Your application should reach our managing consultant within minutes and your CV could be on a client s desk within hours! 8

9 Some important points to note about the site include the following: Vacancies are live they are updated every working day Vacancies are all genuine You can search our extensive database of vacancies using Job Search criteria based on your own skills and preferences The Parity website also offers a wealth of helpful information to contractors including details of support schemes and services for the first-timer and the experienced freelance consultant. In addition, you can find out about the wider services offered by Parity Solutions. Acting as a natural extension of an organisation s human resource function, Parity maintains close personal contact with clients and candidates throughout the recruitment process. We ensure that sufficient time is invested to gain a true understanding of both a candidate s capability and a client s corporate and commercial culture to facilitate a mutually beneficial relationship. The Permanent option Parity has been facilitating career development for IT professionals since 1973 in both the permanent and the contract arena. Our team of dedicated permanent recruitment consultants are able to leverage a broad mix of professional services tailored to both candidates and the clients they serve including: Directed and generic advertising campaigns Executive search Contingency recruitment Database search Online advertising strategies Networking Managed agency services Psychometric testing Open days Our consultants work across all IT and related disciplines and there is always a subject matter expert on hand to discuss your needs and to advise on a course of action tailored specifically to you to assist you in finding your next position. Details of our services and the latest permanent jobs can be found at: 9

10 A Little Help From Your Friends Professional insurance for contractors It is a common misconception amongst contractors that staffing organisations liability insurance also provides cover for the contractor. Our own insurance protects us against claims made by third parties but a claim may still be made against you as an individual where you are personally liable. Even if you are not liable, legal fees may still need to be covered if a claim is made against you. A short summary of each element of professional insurance follows: Employers liability insurance - A policy must be taken out for employers liability insurance by contractors trading as a Limited company. It is a legal requirement for every employer carrying out business in the UK to take out this type of cover, except where only one person is employed. This insurance is arranged to protect employers against claims for injury or illness brought by employees. The Employers Liability (Compulsory Insurance) Regulations 1998 require that employers maintain cover to a minimum of 5,000,000 in respect of such claims. Public liability insurance - The object in taking out a public liability policy is to protect you against your legal liability for third party bodily injury and/or loss or damage to property where such injury or damage occurs during the period of the insurance. Professional indemnity insurance - Professional indemnity insurance provides you with financial protection for your limited company or practice and is designed to meet the cost of defending claims made against you, including damages that may become payable. Claims can occur where someone suffers a financial loss as a result of alleged errors or omissions on your part. You could also be sued unfairly by a client who is merely dissatisfied, but has no valid claim. This could still result in legal costs and in addition, substantial loss of contract earnings if you have to spend time defending yourself against an action. In selecting and obtaining insurance cover, Parity strongly recommends that contractors always obtain independent advice from suitable organisations, regulated and authorised by the Financial Services Authority. Your operation method; Limited company or Umbrella company YYou can alter your method of operating at any time during a contract. One of the simplest ways to change to a Limited company is to purchase an off-the-shelf company. This is a quick and easy way of getting established as a trading entity with limited liability. Independent Financial Specialist organisations can provide services to advise and arrange the set-up of such Limited companies. 10

11 In the past, most UK contractors operated through a personal service company because of the flexibility and potential tax advantages that it provided. On the 6th April 2000, new tax and National Insurance Contributions (NICs) legislation was introduced that changed the tax treatment of income earned via personal service companies and other similar intermediaries (including Umbrella companies). This tax legislation is called IR35. Under IR35 the tax treatment of income received by personal service companies depends on the nature of the work assignment i.e. whether it is considered selfemployment for tax purposes and therefore exempt, or employment and hence caught by the new rules. In assessing whether an IT contract assignment has the characteristics of employment or self-employment, the Inland Revenue will look at the circumstances under which the services are provided. This will commonly involve looking at a key point of reference e.g. the contract(s) under which the contractor provides the services. However, whilst very significant, the contract is not the determining factor as the day-today working practice of an assignment must support the interpretation of the contract. Mere alteration of the written contract is not sufficient to make it one of self-employment. As there is currently no statutory definition of employment the Inland Revenue will look at various factors in the contract to help them identify whether it is a contract of service (employment), or a contract for services (self-employment). The Inland Revenue has issued guidance regarding the basis of these assessments. This can be found on the HMRC s website ( or you can obtain an informative guide for contractors at your local tax office. Contractor care ongoing support Clients recognise the importance of contract professional services as an essential part of their personnel strategy. They now expect contract agencies to offer their contractors elements of the Human Resource function that clients would normally provide for their own employees. In common with salaried staff, contractors do not perform at their best if they are unable to communicate concerns or resolve difficulties in an appropriate manner. As preferred suppliers to some of Europe s most prestigious companies, Parity has acquired many years of experience in the provision of on-site support to contractors. Our intention is to limit the stresses and strains of commencing/concluding a contract and to pre-empt or ease problems that may arise during its course. Parity staff are on 11

12 hand to assist new contractors with travel arrangements and accommodation. They will make site visits during the assignment itself and will be actively seeking alternative contract opportunities for you before your contract finally concludes. Whether you have just accepted your first contract or are an experienced contractor with concerns about a particular contracting issue, Parity has the knowledge and expertise to assist you. We will give help and advice if we are able to do so. If you require specialist guidance from a qualified professional we will gladly point you in the right direction. Conduct Regulations The Conduct of Employment Agencies and Employment Businesses Regulations 2003 came into effect on the 6th July 2004 for limited company contractors. Several of the regulations deal with the way in which agencies conduct themselves with their workers. The Conduct Regulations have been effectively primarily designed to protect those who are abused by unscrupulous agencies, particularly within the low paid sectors, but they cover all workers without distinction, whether they are employed via a personal service or a managed service company. However, it has been successfully argued that such level of protection was not necessarily appropriate for self-employed freelancers, knowledge based and highly skilled contractors. After persistent lobbying from both the IT Recruitment industry (including the Recruitment and Employment Confederation) and the IT contracting community, including the Professional Contractors Group (PCG), the Government agreed a concession in Regulations 32 (9) giving contractors who are supplied through a Limited company the opportunity to opt out of the Regulations in their entirety, in which case none of the Regulations apply. To ensure that the actual contractual relationship is reflected in your contract and to ensure that those contractors who do not opt out are afforded the rights and protection granted by the Regulations, we have two sets of contracts clearly indicating whether they are opt out or opt in contracts. You will be given the option to opt in or out, should you decide to opt in you will be issued with an opt in contract. You may withdraw your decision by giving further notice to us, but this will not take effect until the individual stops work in their current assignment. 12

13 Agency Workers Regulations The AWR regulations came into effect on 1st October The regulations were introduced to protect temporary workers, ensuring they receive the same levels of pay and working conditions as a comparable permanent employee. Many IT and professional workers providing services are considered in business on their own account if they elect to operate through a personal services company. Such categories of workers are not within the scope of being a temporary worker and therefore outside the scope of AWR. However, workers who provide services through Umbrella companies, engaged through employment contracts, are within scope of temporary worker and receive the benefits and protections which the regulations provide. AWR provides two categories of rights for temporary workers, a) those applying from Day one of an assignment and b) those after 12 weeks have elapsed. a) Day one rights provide the temporary worker with access to the same shared facilities as their permanent counterpart. The hirer has the sole responsibility to ensure these are provided. b) Week 12 rights provide a temporary worker, (engaged on the same assignment by the same hirer), with at least the same pay and working conditions as their comparable permanent counterpart. Primarily this covers salary, (including overtime and bonus), days of holiday entitlement and hours of work. The hirer, agency and any service provider, are responsible for compliance. The regulations provide for an alternative to equal pay, which is to be instead paid between assignments, often referred to as Swedish Derogation. If AWR applies to your circumstances, Parity will work in conjunction with your chosen umbrella company to support you through the AWR process. Largely, this concerns you making the decision to contract with your umbrella company through an equal pay or pay between employment contract. 13

14 Our Commitment to Excellence In this document we have tried to anticipate the questions a first-time contractor or experienced professional might ask when commencing a new contract. We hope that the key issues have been addressed with a measure of clarity. As a service industry, we stand or fall on our ability to identify our customers needs and supply timely, appropriate and cost-effective solutions for contractors and clients. We are striving for excellence in every aspect of our commercial activity, but only you are qualified to judge whether we are achieving our goal. Please feel free to address your comments to: Richard Alcock Contracts Manager C/o Parity Resources Wimbledon Bridge House 1 Hartfield Road Wimbledon London SW19 3RU r.alcock@parity.net Contact Details To speak with one of our trusted consultants contact us on: t: e: recruitment@parityprofessionals.co.uk w: 14 Parity Professionals is a Recruitment and People Development organisation with a network of offices in London, Manchester, Belfast and Edinburgh. We work closely with our clients to source, develop and retain talent, building both capacity and capability to improve business performance.

15 Appendix A Example of Contractor Invoice Limited Company Name Limited Company Address Details Limited Company Registration Number Limited Company VAT Number (if registered) Invoice Number Invoice Number Invoice Date Client Services, Parity Resources Limited 2 Bath Place, Rivington Street, Shoreditch, London, EC2A 3DR Invoice for consultancy services rendered by Contractor Name to Name of Client on behalf of Parity Resources for the period. Period Cost per Day/Hour Days/Hours Worked Total 15

16 Appendix B Example of Self Billing Invoice Address: SELF BILL INVOICE Limited Company Name Limited Company Address Account Code Invoice Dated Co. Reg: Limited Company Reg. No; VAT Reg: Limited Company VAT No Consultant: Contractor Name For Date Commencing Invoice Description Number of Units Rate Amount Date Daily/Hourly 0.00 Daily/Hourly Net Total: VAT (Std Rate): Total: GBP Contract Number Payment Details: Note: the VAT shown is the output tax due to Customs and Excise 16

17 Appendix C Example of Remittance Advice To: Limited Company Name From: Company Name: Parity Resources Limited Limited Company Address Address: Wimbledon Bridge House 1 Hartfield Road London SW19 3RU UK Telephone: Fax: Giro:... VAT Number: Payment Advice Date: 08/11/2011 Page: 1 Payment Reference... Your Ref Payment ID Our Ref Date of Payment Payment Amount Invoice Currency ITQ_PAR_ VPJ GJN 08/11/2011 6, GBP 6, GBP 17