•    Jobs
• Services
  • -  Reinforcements
  • -  Permanent
  • -  Construction
  • -  Highways
  • -  Rail
  • -  London Underground
  • -  On-site Alliance
  • -  M&E
  • -  International
  • -  Facilities Management
  • -  Business Support
  • -  Managed Service
  • -  Skills Testing
  • -  Commercial
• My SkyBlue
  • -  Join SkyBlue
  • -  Work With Us
  • -  Email Your CV
  • -  Interview Hints
  • -  Writing a Better CV
  • -  Associated Benefits
  • -  Training
  • -  Payment Methods
• Employers
  • -  SkyBlue Info Pack
  • -  Client Booking Form
  • -  Training
• News
  • -  Latest News
  • -  News Archive
• About Us
  • -  Contact us
  • -  Office Directory
  • -  Case Studies
  • -  Sustainability

PAYE, Composite and Limited Companies

Pay as you Earn

If you register as a PAYE temporary associate, SkyBlue will deduct your tax and National Insurance– see explanations in this guide.  We will issue you with Terms and Conditions of Engagement for temporary work with us.

Ltd Companies

If you choose to work for a Ltd Company we will require a copy of your Certificate of Incorporation, and VAT certificate.  We will issue you with an IR35 contract between your company and ourselves.

Composite Companies

We offer you the opportunity to work for a composite company, which can be arranged through our partners Brookson, Sterling & Crest Pay.

As an employee of the composite company, you will receive a salary, which would be at least the National Minimum Wage. Allowable expenses and pension contributions are paid tax free. The remaining funds, after fees and corporation tax, are paid out to shareholders as dividends.

We will require your Certificate of Incorporation, and VAT certificate, and we will issue your company with an agreement regarding your work arrangements.

Payment Process – for PAYE temporary workers

For temporary assignments all SkyBlue’s associates are paid via BACS directly into their bank accounts.  It is imperative that you have your own account, as once the BACS payment has been sent we cannot retrieve it if you use another person’s account.

The SkyBlue working week is from Saturday to Friday. Your payslip will be sent via post and will normally reach you on the Saturday.

Tax and National Insurance– for temporary PAYE workers

For temporary PAYE workers we will require your P45 to ensure that your tax is deducted at the correct rate.  If you do not have a P45 then we’ll ask you to complete a P46.  This means you will pay emergency tax for the first few weeks until we receive the correct tax code, from your P45 or tax office.  Any overpayment that may be due whilst on an emergency tax code, will be refunded to you.  If you do not sign a P46 or hand in your P45 you will automatically be on a ‘BR’ or basic rate tax code.

We are legally obliged to deduct National Insurance, as we do tax, from your earnings.  You must provide documented proof of your NI number.  Not providing this can cause delay to benefit claims in the future.

Paid Annual Leave – for temporary PAYE workers

Under the European Directive, Working Time Regulations 1998, every individual is entitled to Receive pro-rata 4 weeks paid annual leave (holiday) per year, inclusive of bank/public holidays.

Important note: PAL is your responsibility to take; you cannot either carry unpaid leave into the following year, or be paid in lieu for days you have not taken.  Bank/public holidays will be automatically paid if you are not working on that day, as long as you have accrued enough PAL entitlement.  PAL cannot be paid in advance, but will be paid the week following the leave period.  The PAL scheme is not subject to National Insurance deductions but is subject to tax.

Statutory Sick Pay – for PAYE temporary workers

Statutory sick pay is not payable for the first three days of sickness.

If you are sick for three to five days, you should complete and return a ‘self certification’ sickness form to your branch, which will forward the paperwork to SkyBlue payroll.

A doctor’s note should be obtained and returned to your branch if you are unable to work for more than five days.  Your branch will make the necessary arrangements with SkyBlue payroll for SSP payment.