Are you an international contractor wondering how to maximise your take-home pay while staying compliant? At Futurelink Group, our Gross Payment Solution (GPS) could save you thousands compared to traditional payroll.
With global contracting on the rise, choosing the right payroll model is critical. The traditional PAYE system and our innovative GPS model offer distinct approaches, each with unique benefits. Discover which is best for your international contracting needs.
Key Areas We Will Cover
- Overview of traditional payroll and the GPS model
- Key differences in tax handling, compliance, and take-home pay
- Benefits of the GPS model for international contractors
- How Futurelink Group’s GPS ensures seamless payroll management
- Practical tips for choosing the right payroll solution
Introduction
As an international contractor, navigating payroll options can be daunting, especially when working across borders. At Futurelink Group, we understand the complexities of global contracting and offer tailored solutions to maximise your earnings while ensuring compliance. Our Gross Payment Solution (GPS) stands in contrast to traditional payroll systems, offering flexibility and financial advantages for sole traders. This article compares traditional payroll with our GPS model, highlighting why Futurelink Group’s approach is ideal for international contractors seeking efficiency and compliance.
Understanding Traditional Payroll and GPS
Traditional Payroll (PAYE)
Traditional payroll, typically Pay As You Earn (PAYE), involves an employer or umbrella company deducting income tax and National Insurance Contributions (NICs) from your earnings before payment. Key features include:
- Automatic Deductions: Taxes and NICs are withheld at source, simplifying tax compliance for UK-based workers.
- Employer NI Contributions: Employers pay additional NICs, which can reduce the contractor’s net pay.
- Limited Flexibility: Fewer opportunities to claim business expenses, potentially lowering take-home pay.
- Statutory Benefits: Includes holiday pay, sick pay, and pension contributions, but these may not suit all contractors.
This model suits UK-based contractors under IR35 or those preferring a hands-off approach to tax management.
Gross Payment Solution (GPS)
Futurelink Group’s GPS model is designed for sole traders, particularly those working internationally. Key features include:
- Full Gross Payments: Contractors receive their earnings without upfront tax or NI deductions, managing taxes via self-assessment.
- No Employer NICs: Neither the contractor nor the client pays employer NICs, increasing net income.
- Expense Claims: Business-related expenses, such as travel and subsistence, can reduce tax liabilities.
- Multi-Currency Payments: Payments in GBP, EUR, NOK, USD avoid conversion fees for international contractors.
- Comprehensive Insurance: Includes Employers Liability, Public Liability, Professional Indemnity, Personal Accident, and Travel & Medical insurance all within a tax-deductible fee.
The GPS model is ideal for self-employed contractors seeking flexibility and higher take-home pay.
Key Differences Between Traditional Payroll and GPS
Aspect | Traditional Payroll (PAYE) | GPS Model |
Tax Handling | Taxes and NICs are deducted at source | No deductions; taxes paid via self-assessment |
Employer NICs | Paid by employer, reducing worker net pay | Not applicable, increasing net income |
Expense Claims | Limited expense claims | Extensive, reducing tax liability |
Compliance | Managed by an employer or umbrella company | Contractor responsible for self-assessment |
Suitability | UK contractors, IR35-compliant roles | International contractors, sole traders |
Payment Flexibility | Standard GBP payments | Multi-currency (GBP, EUR, USD) |
Benefits | Statutory benefits (holiday, pension, sick pay) | Comprehensive insurance included |
Benefits of the GPS Model for International Contractors
Futurelink Group’s GPS model offers significant advantages for international contractors:
- Maximised Earnings: By avoiding upfront deductions and employer NICs, contractors retain more of their income. For example, a contractor earning £100,000 annually could save up to 15% more compared to PAYE, depending on expenses claimed.
- Global Flexibility: Multi-currency payments eliminate conversion losses, ideal for contractors with overseas bank accounts.
- Tax Efficiency: Claiming business expenses, such as travel and subsistence, reduces tax liabilities, boosting take-home pay.
- Compliance Assurance: Our FCSA-accredited GPS solution includes tax indemnification for clients, ensuring peace of mind.
- Seamless Administration: With same-day payments, daily payrolls, and a secure online portal, managing finances is effortless.
As client Rob P from an energy recruitment agency noted, “Futurelink’s payment processing times are faster than other umbrella companies, and support is clearly a priority.”
How Futurelink Group Supports You
At Futurelink Group, we make the GPS model simple and effective for international contractors:
- Easy Onboarding: Our DocuSign process ensures quick, seamless registration.
- Fast Payments: Same-day payments and twice-daily payrolls on Fridays keep your cash flow steady.
- Comprehensive Support: Our team, including experts like Daniela and Liz, provides prompt, professional assistance.
- Secure Portal: Access payslips, submit expenses, and manage your account securely online.
- Insurance Coverage: All necessary insurances are included, supporting both UK and international contracting.
Client Chris, a project manager, said, “Every email or problem is replied to and resolved almost immediately. Couldn’t ask for a better company to do my payroll.”
Tips for Choosing the Right Payroll Solution
To select the best payroll model for your international contracting needs:
- Assess Your Work: If you’re a sole trader working overseas, GPS offers greater flexibility. PAYE suits UK-based contractors under IR35.
- Consider Tax Responsibilities: GPS requires self-assessment, so ensure you’re comfortable managing your taxes or hire an accountant.
- Check Compliance: Partner with FCSA-accredited providers like Futurelink Group to avoid non-compliant schemes.
- Evaluate Costs: Compare employer NICs and administrative fees. GPS typically offers better value for high earners.
- Consult Experts: Contact Futurelink Group for a free consultation to determine the best fit for your needs.
Conclusion
Choosing between traditional payroll and Futurelink Group’s Gross Payment Solution depends on your contracting goals. While PAYE offers simplicity for UK-based contractors, our GPS model provides unmatched flexibility, tax efficiency, and higher take-home pay for international sole traders. With our FCSA accreditation, fast payments, and dedicated support, Futurelink Group ensures your payroll is compliant and hassle-free, wherever you work. Make an informed choice to maximise your earnings and streamline your finances.
Get Started with Futurelink Group Today
Ready to boost your take-home pay with our Gross Payment Solution? Contact Futurelink Group for a free consultation and discover how our GPS model can transform your international contracting experience. Call us at 01923 277900, email sales@futurelinkgroup.co.uk, or visit Futurelink Group to get started.
Partner with us for compliant, efficient, and rewarding payroll solutions!
Craig Moss
Craig Moss is a seasoned professional in the employment and recruitment industries, based in Kings Langley, UK. With over 30 years of experience, including a successful tenure as a central London realtor handling properties up to £3 million, he now leads an exciting management role at Futurelink Group. Specialising in compliant payroll solutions for contract recruitment, Craig helps clients increase margins by up to 30% while navigating complex legislation. His people-focused approach, honed through decades in sales and people management, ensures both recruiters and workers benefit from tax-efficient, compliant solutions. Passionate about building strong relationships, Craig thrives on delivering results that drive business success.
