PAYE is the current payroll standard for staff. It is simple to operate either through Arcadia or through an umbrella company which will receive payment on behalf of an individual. Funds are then properly deducted for all appropriate taxes and insurance fees. The umbrella company will also deduct their own processing fee before forwarding the balance to each worker. Umbrella fees can vary from one company to another.
Some workers have their own limited company. They take responsibility for their own tax affairs and insurance needs, setting up a business bank account and using the services of an experienced accountant. As the director of your own company, you will need to keep Companies House informed of your tax and legal status on a regular basis. Failure to do so can be a criminal offence. You will also need to keep detailed accounts of expenses incurred, invoices sent to agents or clients and, where appropriate, VAT records. You will be responsible for submitting accurate corporation tax returns and filing them with enough time to avoid late payment fees. Regular IR35 reviews will have to be conducted to ensure you are on the right side of the law.