Collective Plus (No Travel & Subsistence Expenses)
Frequently Asked Questions for Contractors

1
Why is my take-home pay different to my expected pay?

Expenses
If you previously claimed weekly expenses your take-home pay will be affected as of 6th April 2016, because you will no longer be able to claim Travel & Subsistence (T&S) expenses. Any non-T&S expenses can be submitted on a weekly basis, as normal, however will be paid annually. For more information about our expenses procedure, please visit the Contractors section of our website: www.racsgroup.com.

Holiday Pay Accrued
RACS Collective Plus Limited is legally obliged to automatically accrue holiday pay at 12.07%.

Incorrect Tax Code
It is possible that you have not sent us your P45 and therefore the tax code applied will not be correct.

2
Can I still claim expenses?

As of 6th April 2016, the majority of contractors can no longer claim tax relief on previously allowable expenses claims for home-to-work (or work-to-home) travel. This follows the introduction of new travel and subsistence legislation in April 2016 as part of the 2016 Finance Bill.

However, tax relief on legitimate business expenses can be claimed at the end of your financial year. To make your expenses claims, you will need to complete and submit either your annual self-assessment submission or a P87 form to HM Revenue & Customs.

You can still record your business expenses on a regular basis via your online contractor portal and RACS Collective Plus Limited will provide you with a complete list of all recorded expenses at the end of the financial year.

Please remember to keep all your receipts throughout the year to support your expenses claim. 

*National Living Wage & National Minimum Wage Rates 2016
25 & Over - £7.20
21 to 24 - £6.70
18 to 20 - £5.30
Under 18 - £3.87
Apprentice - £3.30

3
Why am I paid national minimum wage?

Under the umbrella model, your net pay comprises of National Living Wage (NLW) at national hourly rate for hours worked, plus commission and reimbursed expenses. Commission is paid in addition to the pay rate and is calculated on the basis of funds remaining after pay at NLW and our overheads; these include employers National Insurance, employers pension contribution (if applicable), holiday pay and our margin.

4
How do I log-in to my contractor portal?

Login to the Contractors Portal using this link and enter your Username & Password. Typically, your Username is your email address and your Password can be retrieved if forgotten. We strongly recommend that you change your password on a regular basis.

5
How does my holiday pay work?

Our team will also explain the various options available to you regarding your holiday pay which is calculated at 12.07% of gross earnings (this is 5.6 weeks per annum or 28 days per annum).

  • Holiday pay is accrued by RACS Collective Plus Limited on your behalf and can be drawn upon during the periods when you are on holiday or not working.
  • You can request (in writing) a full or part payment of your accrued holiday pay at any time.
  • If you do not want RACS Group to accrue your holiday pay you must notify us via email to payroll@racsgroup.com

6
Why have I been opted into a pension scheme?

It is legal requirement to ‘opt-in' every employee of RACS Collective Plus Limited who meets the criteria of the new Government Pensions Scheme (i.e. between the ages of 22 and pensionable age and earning above the annual threshold). Our chosen pension provider is NEST who will contact you via post once you have met the aforementioned criteria.

7
Why am I on the wrong tax code?

Please send RACS Group your P45 to ensure that you are on the correct tax code from the start of your employment with us. If you believe that your tax code needs to be amended, the payroll department can advise you on contacting HM Revenue and Customs. If you need a P45 at the end of your employment, please contact RACS Group using the contact details below.

8
What is my employment status?

You cannot now legally work in the UK without a Contract of Employment which includes various employer responsibilities and obligations. The agency enters into a business to business contract with the end client. This contract states that we will supply them with an individual who has the necessary skills to satisfy the clients’ requirements.

The agreed rate for the services provided will be paid to RACS Collective Plus Limited within a prearranged period of time. Our clients will choose to use a contractor rather than a permanent employee if they do not wish to assume the ‘employment rights’ that are associated with permanent employees; RACS Collective Plus Limited will assume these rights.

9
What happens if I do not have a P45?

If you do not have a P45, RACS Collective Plus Limited will complete a P46 on your behalf at the point of registration which will determine your tax code.

10
How do I know when I’ve been paid?

RACS Collective Plus Limited sends contractors a text outlining your net pay every Thursday. Weekly payslips are also uploaded to your contractor portal account. Cleared funds are available in your bank account on by 9am on Fridays.

11
What insurance am I covered by?

As an employee of RACS Collective Plus Limited, you are covered by all relevant insurance policies including Employers Liability, Public Liability and Professional Indemnity.

12
How much does your scheme cost?

RACS Collective Plus Limited charges a % plus cap or a fixed weekly charge based on the terms of the commercial relationship with the agency.

Contact

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Frequently Asked Questions


Copyright RACS Group 2017 - Recruitment and Contractor Services Limited

Registered in England & Wales – Company No. 6073586 – VAT No. 891 863 869
Registered Office – RACS Group House – Three Horseshoes Walk – Warminster - Wiltshire – BA12 9BT

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08/17

Copyright RACS Group 2016 - Recruitment and Contractor Services Limited

Registered in England & Wales – Company No. 6073586 – VAT No. 891 863 869
Registered Office – RACS Group House – Three Horseshoes Walk – Warminster - Wiltshire – BA12 9BT

Terms & Conditions - Privacy Policy - Sitemap
08/17