Depending on the information provided to Compass during a worker’s registration, it may be necessary to apply a non-cumulative (temporary) tax code to payments to ensure the worker doesn’t underpay tax. A non-cumulative tax code is indicated by an X being placed at the end of the code e.g. 1257L X. Once they have processed a worker’s first payment, employers cannot make changes to a tax code without receiving direct instructions from HMRC to do so. Should a worker wish to switch their tax code to a cumulative one, we advise that they call HMRC on 0300 200 3300 to request the change. When [...]
As a self-employed contractor you are responsible for arranging your own insurance. It's is particularly important that you obtain suitable insurance cover if you are operating machinery or plant not belonging to you, as the liability for damage to the machinery or plant, or caused by it, can be significant.
Your remittance advice (pay slips) can be be accessed via the Compass portal, you will be sent a separate link to this. Contact. You can email Compass at firstname.lastname@example.org or call 03333 66 00 28 should you have any difficulties or queries.
Compass will receive payment from your agency and will make payment to you. You are responsible for making payment direct to HMRC for any other required deductions e.g. National Insurance, and for submitting a Self Assessment tax return when required.
The three lines displayed in the payments section of an umbrella payslip make up an employee's gross wage after employer costs have been deducted from the assignment rate. These are Basic Rate, Holiday Pay and Additional Taxable Wage. For each hour an employee works, Compass pays the national living wage at the prevailing rate set by Government. This is shown as the Basic Rate. This approach allows for a worker to be placed in several assignments without the need for a new contract on each assignment and also supports a compliance check that the appropriate minimum wage is being paid at all times. For [...]
When an employee engaged in an assignment with an agency receives PAYE payments from an umbrella company, they are employed by the umbrella company. They do not have an employment contract with the agency or end client. As the employer, Compass assumes the relevant responsibilities of the role and will report earnings and tax figures to HMRC, assist with statutory payments, and issue P45s. All payroll, HR, and employment queries should be directed to Compass. Timesheet-related queries are typically dealt with by the agency, so we advise workers to contact their agencies with these queries rather than Compass.
Tax codes are determined by HMRC and it's not uncommon for aggressive tax codes to be applied as a precautionary measure by HMRC. This can result in smaller net payments in the short term, but throughout the course of the financial year, income tax will always balance out to the correct figure, either in the employee’s future payroll or as a tax rebate issued directly by HMRC. Compass does not have the authority to manually alter an employee’s tax code without receiving prior instruction from HMRC, so we advise employees to call HMRC on 0300 200 3300 if they believe Compass has used an [...]
As an employer, Compass has a legal obligation to pay its employees holiday pay alongside their normal wages. All elements of an umbrella worker’s wage are included in the assignment rate that is sent to Compass by the worker’s agency or client. Therefore, Compass does not pay holiday pay on top of a worker’s predetermined rate, but instead splits a portion of the rate off as holiday pay. Once holiday pay has been split off, the worker can choose from one of the two options below: Rolled-up holiday pay: The holiday portion of the employee’s wages is added back into their gross wage, subject [...]
To be eligible to claim for Statutory Sick Pay (SSP), an employee needs to have been off work for 4 or more consecutive days. The standard rate of SSP is then paid from the 4th day onwards and is calculated at the prevailing rate set by Government. To claim for SSP, an employee needs to fill in an SC2 form and send it to email@example.com. The SC2 form can be completed and downloaded here: If an employee’s sick leave extends beyond a week, Compass requires the employee to submit a signed Doctor’s note to verify the leave and approve further statutory sick payments. Employers [...]