Associate Trading Methods

In order to ensure that RED remains fully compliant with HMRC legislation it is essential that we are very clear as to how our associates are trading with us in relation to the mechanisms by which they are receiving payments and the means and extent to which PAYE and NIC payments have/will be deducted from all payments they receive. This information is needed to assess the correct clauses to be used in any future Contracts and Purchase Orders, to protect both you as our supplier and RED from liabilities and penalties in relation to HMRC rules, in particular, the False Self Employment Legislation.

We would be grateful if you could answer the following questions as comprehensively as possible, in order that we can process any future Contract/Purchase Order(s) without delay, and future payments correctly in relation to PAYE and NIC liabilities:

Limited Company Do you trade/work via a Limited Company? Yes/No

If Yes please provide company name, Name – registered address, company registration and VAT registration number below: Registered Address –

Company Reg No –

VAT Reg No (if applicable) -

Are you a Director of the Limited Company Yes/No named above? Do you draw a salary and/or dividends from theYes/No Bank Account of this Limited Company? (Salary is already subject to PAYE/NIC, and dividends are not “caught” by this legislation) Does the Limited Company have other employees? If so how many, and in what capacity?

Does the Limited Company EVER act as an Yes/No intermediary whereby they provide associate If Yes please describe resources to RED (or others) where the associate resource is paid by the Limited Company and not directly by RED (or others)? Where the Limited Company Does occasionallyYes/No act as an intermediary providing associate If No – how is payment made? resources, does the Limited Company deduct PAYE/NIC from payments made to associates? For the purposes of your current/future Yes/No Contract(s) with RED Scientific will you be If No please describe how you will be [email protected] www.red-scientific.co.uk Tel: 01420 80011

contracting with RED via the Limited Company contracting with RED for your current/future named above? contract(s)

Is this the only method by which you Yes/No trade/work? If No – what other methods do you use i.e. Additional Limited Company(s) Other Employee – Describe Umbrella Company Sole Trader under IR35 Personal Service Company (PSC) Agency Worker Other (please describe)

Umbrella Company Do you ever trade via an Umbrella Company? Yes/No If Yes provide details of companies used

Please confirm what deductions the Umbrella Company makes before you receive your payment. Other Method of Trading If you do not trade via either a Limited Company or an Umbrella Company for the purposes of your current/future Contract with RED Scientific, please describe your current arrangements Including details of the arrangements that you have in place for the deduction from your earnings of PAYE Tax and National Insurance payments. Response: