1. solutions
Discover the right solution for you
CIS
UMBRELLA
PAYE
FREELANCE
Understanding Supervision,
Direction and Control (SDC)
LIMITED

2. “We have been working with Exchequer Solutions for the last 2 years and we have found
their customer services for both ourselves and our candidates to be of a very high level.
Queries and requests are dealt with quickly and efficiently with an ‘always happy to help’
attitude. They are able to offer our candidates an affordable service without lowering
standards and we look forward to continual work with them.” Amanda
It’s all about SDC
From April 2016
all agencies will
have to assess their
workforce before
deciding which
routes they will make
available to them.
In an ever changing
landscape we are here
to help you make the
correct decision and have a
compliant option available
for every circumstance.
From April 2016 legislation
will require agencies to
consider the Supervision,
Direction and Control (SDC)
status of their workforce
as to the manner in which
services are provided – in
essence this will mean
considering whether it is
intended that the end client
is supposed to (or has the
right to) tell the operatives
HOW to complete their
work, or whether it is
intended that the operatives
have the skills and
experience to know HOW to
complete their work.
“We have been working with Exchequer Solutions for the last 2 years and we have found
their customer services for both ourselves and our candidates to be of a very high level.
Queries and requests are dealt with quickly and efficiently with an ‘always happy to help’
attitude. They are able to offer our candidates an affordable service without lowering
standards and we look forward to continual work with them.” Amanda
This assessment, together with the contractual terms that are put in
place, are the key element of the decision making process, we urge
you to assess your workforce as soon as possible and to continue
doing so on an on-going basis. If you need assistance we’re happy to help and
can enlist the help of our Tax Advisors if required.
Where SDC is in place then access to expenses is restricted and CIS is not available,
where SDC is not in place then all options are available. It is vital that SDC is
considered in conjunction with your end clients as the T’s and C’s will have to reflect
the intentions of all parties.
Once the workforce has been assessed it’s a case of offering the appropriate options
to the relevant workers. For some this may well mean a negative change in their take
home pay, for others they may take the opportunity to incorporate or work on a
self-employed basis and actually benefit from the change.
T 0844 846 5007 E info@exchequersolutions.co.uk W www.exchequersolutions.co.uk Text 07537 415 280 Exchequer Solutions Limited 1st Floor, The Exchange, 1 St John Street, Chester CH1 1DA

3. Low paid workers.
John is currently earning £8.55 an hour, he found his role through a recruitment agency
and is currently being paid PAYE through Exchequer. John won’t really feel the impact of
the changes to travel and subsistence as he hasn’t been earning enough to benefit from
claiming expenses. For John and other individuals in his situation (generally workers on
£9.15 an hour or less) no action is needed. They can continue to be paid PAYE or umbrella
by Exchequer and will still benefit from our excellent customer service and we will
continue to take responsibility for ensuring compliance and the administrative burden of
RTW, pension, pay calculations, employer’s liability etc.
Medium pay.
Sarah has been working for £11.75 on a temporary assignment. She is managed while
carrying out her day to day tasks so is subject to supervision, direction and control (as are
the majority of workers in this pay bracket, £9.15-£11.75 per hour). Unfortunately she will
feel the impact of the changes as she will no longer be able to claim expenses for the cost
of travelling to her current temporary assignment or for her lunches.
Broadly speaking we’re
finding most workforces being
assessed roughly as follows;
T 0844 846 5007 E info@exchequersolutions.co.uk W www.exchequersolutions.co.uk Text 07537 415 280 Exchequer Solutions Limited 1st Floor, The Exchange, 1 St John Street, Chester CH1 1DA
For workers like Sarah there is no reason to make any changes, they can still be engaged
on the Exchequer Umbrella or PAYE arrangement but with very limited expenses. Sarah
will still have access to some expenses as it is only travel and subsistence that is being
restricted under the new legislation. Exchequer can take on all employer liabilities, RTW
checks, pension processes and offer the worker the status of an employee.
As we will have less work to do in terms of expenses we’re happy to discuss discounted
margins for workers like Sarah where appropriate.
High Pay (£11.75 and above).
Simon is a skilled tradesman and usually works for an hourly rate of £18. Whilst skilled
tradespeople and those on a higher hourly rate are more likely to manage their own work,
their pay rate alone does not confirm a lack of SDC.
Simon is not subject to supervision, direction or control and as such can continue to
work as an umbrella employee and claim expenses for travel and subsistence just as he
has done previously. Someone like Simon might also want to consider setting up as a
limited company to benefit from further tax efficiencies. For others who work within the
construction sector and can demonstrate a lack of SDC, CIS is also a valid option.

4. T 0844 846 5007 E info@exchequersolutions.co.uk W www.exchequersolutions.co.uk Text 07537 415 280 Exchequer Solutions Limited 1st Floor, The Exchange, 1 St John Street, Chester CH1 1DA
Even if it is felt that SDC applies then a
PSC may well still be a viable option for
the contractor as this requires a slightly
different test, IR35 – again we can help
via our Chartered Accountancy division.
We can support you and your workers whatever
their situation, we have created a suite of
options so there is a suitable route for everyone.
We aim to make life easier and simpler for our
recruitment clients by being in a position to
offer our services to all your workers.
The benefits for recruiters
• We are fully compliant with all the latest
legislation
• One point of contact but a range of options for
your workers
• Minimal disruption – we will take care of
advising your workers, ensuring they are on a
scheme that suits them
• Extensive experience of working with
contractors
• Peace of mind that our sister company
Exchequer Accountancy are Chartered
Accountants
Is the worker subject to Supervision,
Direction or Control?
When considering Supervision, Direction or Control (SDC) you are required to determine
whether the operative being placed is subject to (or the right to) Direction, Control or
Supervision as to the manner in which they provide their services.
In essence this means considering HOW they provide their services.
If they can be told HOW to do their work then they must have PAYE and NI administered
when they are paid and cannot claim T&S expenses, if not then they can legitimately be
engaged on a self-employed basis or via‘Umbrella’with full access to expenses.
Identifying if workers are subject to SDC enables you to discover what payment routes
are available.
Umbrella:
PAYE:
CIS:
Not subject to SDCSubject to SDC
Umbrella:
Limited:
If a worker is considered to be to subject
to SDC, the following routes are available.
If the worker is not subject to SDC then the
following routes are available.
a worker who is
subject to SDC can still be registered as an
umbrella employee but cannot claim tax
for travel & subsistence.
ideal for your lower paid
workers. Register your workers on our PAYE
scheme and we will take care of paying
them every week. They will always be paid
NMW or NLW plus holiday pay (this can be
rolled up or retained, but will always be
paid out in full). We will also pay ERNI
to HMRC.
If the worker is in the
construction sector.
an umbrella
employee who is not subject to SDC can
still claim tax for travel & subsistence.
for workers with a rate
above £12 an hour this is often the most
tax efficient approach - Also an option for
these where there is SDC as there is a
different test when working as a Ltd
Co contractor.

5. T 0844 846 5007 E info@exchequersolutions.co.uk W www.exchequersolutions.co.uk Text 07537 415 280 Exchequer Solutions Limited 1st Floor, The Exchange, 1 St John Street, Chester CH1 1DA
Umbrella: A worker who is
subject to SDC can still be registered as
an umbrella employee but cannot claim
tax relief for travel and subsistence.
An umbrella employee who is not subject
to SDC doesn’t need to do anything.
They can continue on an umbrella
scheme and will still be able to claim tax
for travel and subsistence. They can also
consider CIS or PSC if they wish and if
appropriate.
CIS: CIS is a viable option
for construction workers who can
demonstrate that they are not subject to
supervision, direction and control.
CIS can be a tax efficient approach for
people who work in the construction
sector and meet all the relevant criteria.
If you are dealing with workers who are
self-employed, work on contracts and
decide how and when their work is carried
out and aren’t supervised then this may be
the route for them.
If you are concerned about CIS rest
assured we will ensure each individual
meets the criteria before registering
them. We can also offer agencies CIS
insurance which should give you peace
of mind.
The routes available
PAYE:This is our straight forward
solution for paying your lower paid
workers. You can fix your labour costs at
just £8.89 an hour for those who are 25
and over (£8.25 for workers under 25) and
let us do the rest.
We employ the workers and take on
all of the administrative costs, such as
registration, payroll, payslip posting, and
bank charges and RTI.
We will pay the workers national living
wage (or national minimum wage for
under 25s) plus holiday pay (this can be
rolled up or retained, but will always be
paid out in full). We will also pay ERNI to
HMRC.
After we’ve done this, a small amount of
money will be left which we will retain as
our margin.
* We have a variety of margin calculations available based upon volume, complexity etc
Limited: Setting up a Limited
company is often the most tax efficient
approach for workers with a pay rate
of above £12 an hour and provides
the contractor with complete control
over their own affairs. It also offers
agencies a risk free route as the burden
of compliance on the contractor
themselves. Again contractual terms are
important and we can help if required.
Our sister company Exchequer
Accountancy Solutions are chartered
accountants specialising in accountancy
services for contractors working
through Ltd companies. They can help
contractors with everything from guiding
them through the initial process of
incorporating a company to supporting
them in the ongoing administration and
accounts for their business.
Over the next few pages we help to explain what to expect from your
payslip for each of the routes available.

6. Your PAYE payslip explained
There is quite a lot of essential information on a payslip.
Here’s how your payslips will look and an overview of what is included.
Continues overleaf ...
solutions
Company Name1
Payroll no.
The unique number which
identifies you.
2
Agency
The number which identifies
your recruitment agency.
3
Salary paid
Your salary payment this week. You
are taxed on this amount plus any
Holiday Pay Paid.
4
Holiday payment
Your holiday pay is subject to Tax
and National Insurance.
5
PAYMENTSDEDUCTIONS
Gross pay for tax
The amount subject to tax and NI
deductions.
6
Tax deducted
The amount you have paid in tax
this week to HMRC.
7
Year to date
In the YTD column you can see the
total amount you have paid in tax
and National Insurance so far this
tax year.
9
Date
The date your pay was processed.
10
Net Pay
The amount of money you take
home after any deductions.
11
Payment Breakdown
A) Total income to the company
The amount paid to Exchequer
Solutions by your agency.
B) Employer NI paid to HMRC
Employer NI contribution paid to
HMRC.
C) Margin
The amount we retain as a margin.
D) Total available for salary
This is the amount payable to you
via salary and holiday pay.
12
solutionssolutionssolutions
9
10 11
1 2 3
4
5
6
7
12
XX123456X
8
NI contribution
The amount you have paid in
National insurance this week.
8
1000L/Week 1
Your PAYE payslip explained
There is quite a lot of essential information on a payslip.
Here’s how your payslips will look and an overview of what is included.
Continues overleaf ...
solutions
Company Name1
Payroll no.
The unique number which
identifies you.
2
Agency
The number which identifies
your recruitment agency.
3
Salary paid
Your salary payment this week. You
are taxed on this amount plus any
Holiday Pay Paid.
4
Holiday payment
Your holiday pay is subject to Tax
and National Insurance.
5
PAYMENTSDEDUCTIONS
Gross pay for tax
The amount subject to tax and NI
deductions.
6
Tax deducted
The amount you have paid in tax
this week to HMRC.
7
Year to date
In the YTD column you can see the
total amount you have paid in tax
and National Insurance so far this
tax year.
9
Date
The date your pay was processed.
10
Net Pay
The amount of money you take
home after any deductions.
11
Payment Breakdown
A) Total income to the company
The amount paid to Exchequer
Solutions by your agency.
B) Employer NI paid to HMRC
Employer NI contribution paid to
HMRC.
C) Margin
The amount we retain as a margin.
D) Total available for salary
This is the amount payable to you
via salary and holiday pay.
12
solutionssolutions
9
10 11
1 2 3
4
5
6
7
12
XX123456X
8
NI contribution
The amount you have paid in
National insurance this week.
8
1000L/Week 1
Your PAYE payslip explained
There is quite a lot of essential information on a payslip.
Here’s how your payslip will look and an overview of what is included.
T 0844 846 5007 E info@exchequersolutions.co.uk W www.exchequersolutions.co.uk Text 07537 415 280 Exchequer Solutions Limited 1st Floor, The Exchange, 1 St John Street, Chester CH1 1DA
Your PAYE payslip explained
There is quite a lot of essential information on a payslip.
Here’s how your payslips will look and an overview of what is included.
Continues overleaf ...
solutions
Company Name1
Payroll no.
The unique number which
identifies you.
2
Agency
The number which identifies
your recruitment agency.
3
Salary paid
Your salary payment this week. You
are taxed on this amount plus any
Holiday Pay Paid.
4
Holiday payment
Your holiday pay is subject to Tax
and National Insurance.
5
PAYMENTSDEDUCTIONS
Gross pay for tax
The amount subject to tax and NI
deductions.
6
Tax deducted
The amount you have paid in tax
this week to HMRC.
7
Year to date
In the YTD column you can see the
total amount you have paid in tax
and National Insurance so far this
tax year.
9
Date
The date your pay was processed.
10
Net Pay
The amount of money you take
home after any deductions.
11
Payment Breakdown
A) Total income to the company
The amount paid to Exchequer
Solutions by your agency.
B) Employer NI paid to HMRC
Employer NI contribution paid to
HMRC.
C) Margin
The amount we retain as a margin.
D) Total available for salary
This is the amount payable to you
via salary and holiday pay.
12
solutionssolutions
9
10 11
1 2 3
4
5
6
7
12
XX123456X
8
NI contribution
The amount you have paid in
National insurance this week.
8
1000L/Week 1
Your PAYE payslip explained
continued...
T 0844 846 5007 E info@exchequersolutions.co.uk W www.exchequersolutions.co.uk
Exchequer SolutionsLimited, 1st Floor, The Exchange, 1 St John Street, Chester CH1 1DA
Timesheet Analysis
This shows the breakdown we
receive from the agency.
Units = the number of hours
Price = the hourly rate
Value = the total
13
Expenses C/F
The amount of expenses claimed
(year to date) that you will be able to
claim tax relief on at the end of the
financial year.
14
solutions
9
10 11
1 2 3
4
5
6
7
12
XX123456X
8
1000L/Week 1
13
14

7. Your payslip explained
There is quite a lot of essential information on a payslip.
Here’s how your payslips will look and an overview of what is included.
Continues overleaf ...
solutions
Company Name1
Payroll no.
The unique number which
identifies you.
2
Agency
The number which identifies
your recruitment agency.
3
Salary paid
Your salary payment this week. You
are taxed on this amount plus any
Holiday Pay Paid.
4
Expenses paid
The expenses you have claimed this
week (your expenses aren’t subject
to Tax or National Insurance.)
5
Holiday payment
Your holiday pay is subject to Tax
and National Insurance.
6
PAYMENTSDEDUCTIONS
Gross pay for tax
The amount subject to tax and NI
deductions.
7
Tax deducted
The amount you have paid in tax
this week to HMRC.
8
Year to date
In the YTD column you can see the
total amount you have paid in tax
and National Insurance so far this
tax year.
10
Date
The date your pay was processed.
11
Net Pay
The amount of money you take
home after any deductions.
12
Payment Breakdown
A) Total income to the company
The amount paid to Exchequer
Solutions by your agency.
B) Employer NI paid to HMRC
Employer NI contribution paid to
HMRC.
C) Margin
The amount we retain as a margin.
D) Total available for salary
This is the amount payable to you
via salary and expenses.
13
solutionssolutionssolutions
10
11 12
1 2 3
4
5
6
7
8
13
XX123456X
9
NI contribution
The amount you have paid in
National insurance this week.
9
1000L/Week 1
Your Umbrella payslip explained
There is quite a lot of essential information on a payslip.
Here’s how your payslip will look and an overview of what is included.
T 0844 846 5007 E info@exchequersolutions.co.uk W www.exchequersolutions.co.uk Text 07537 415 280 Exchequer Solutions Limited 1st Floor, The Exchange, 1 St John Street, Chester CH1 1DA
T 0844 846 5007 E info@exchequersolutions.co.uk W www.exchequersolutions.co.uk
Exchequer SolutionsLimited, 1st Floor, The Exchange, 1 St John Street, Chester CH1 1DA
Timesheet Analysis
This shows the breakdown we
receive from the agency.
Units = the number of hours
Price = the hourly rate
Value = the total
14
Expenses Analysis
A breakdown, by type, of the expenses
we have processed for you this week.
15
Expenses C/F
The amount of expenses carried
forward after we have reached the
legal limit that we can process.
16
TIMESHEET ANALYSIS
Ref Rate Type ValuePriceUnits
Standard Hourly Rate 12.0046.00 552.0033254
552.00Total paid this period
EXPENSES ANALYSIS
0.00Expenses b/f
Allowable expenses analysis
Miles 99.0008/06/201424052
Expenses C/F 0.00
99.00Total Expenses Paid
14
15
16
Your Umbrella payslip explained
continued...

8. Your Limited calculation
There is quite a lot of essential information on a payslip.
Here’s how your payslip will look and an overview of what is included.
Exchequer Accountancy Services Ltd
1st Floor, The Exchange
1 St John Street
Chester
CH1 1DA
Telephone: 033 3323 119
Name:
Company name:
Weekending date:
MONEY IN
Total Amount Of Invoices Raised Inc VAT
Net Total Of Invoices Raised
Total Amount Of VAT
Personal Expenses
Business Expenses
Salary
Total
Operating Profit Including Flat Rate Benefit
Corporate Tax
PAYE
1,080.00
900.00
180.00
200.00
29.08
204.00
433.08
490.32
Money Available to Draw (Salary + Expenses + Dividends)
788.26
Money OutMONEY OUT
Money OutWHAT’S LEFT?
Money OutWHAT DOES MY COMPANY OWE?
TOTAL AMOUNT OF TAX
How much does my company still owe Me?
Expenses
Salary
Total
98.06
4.00
102.06
200.00
200.00
400.00
Total cash in the company1
Hours / days worked x rate2
VAT @ 20%3
Personal expenses4
Accountancy fee5
Salary6
Total of above money out7
Money left before tax8
Tax due9
NI contribution10
Total tax due11
Money company owes
director
12
Total money available13
T 0844 846 5007 E info@exchequersolutions.co.uk W www.exchequersolutions.co.uk Text 07537 415 280 Exchequer Solutions Limited 1st Floor, The Exchange, 1 St John Street, Chester CH1 1DA
Still unsure
on how this
affects take
home pay?
Check out our
helpful take
home pay
comparison
chart on the
next page.

9. Financial Comparison Chart
All examples based on
a 40 hour week
These calculations include
our standard margin
These calculations include
our standard margin
These calculations
include 50% of our
standard magin
Hourly Rate
Umbrella with £75
expenses
Umbrella no
expenses
Umbrella no expenses
with reduced margin
Take Home Pay Take Home Pay Take Home Pay
£9.00 £282.76 £275.00 £280.94
£9.50 £302.76 £287.07 £293.01
£10.00 £322.76 £298.93 £304.87
£10.50 £341.00 £310.80 £316.94
£11.00 £353.07 £322.87 £328.80
£11.50 £364.94 £334.74 £340.86
£12.00 £377.01 £346.80 £352.73
£12.50 £388.07 £358.67 £364.59
£13.00 £400.94 £370.73 £376.67
£13.50 £412.80 £382.60 £388.53
£14.00 £424.67 £394.46 £400.60
£14.50 £436.73 £406.53 £412.46
£15.00 £448.59 £418.39 £424.53
£15.50 £460.66 £430.45 £436.39
£16.00 £472.52 £442.33 £448.26
£16.50 £484.40 £454.39 £460.32
£17.00 £496.46 £466.23 £472.19
£17.50 £508.33 £478.12 £484.26
£18.00 £520.39 £490.19 £496.13
£18.50 £532.26 £502.05 £508.19
£19.00 £544.32 £514.12 £520.05
£19.50 £556.19 £525.98 £531.92
£20.00 £568.05 £538.05 £543.98
Umbrella with £75
expenses
Easy admin for worker. Increased Net Pay. Pension, liability, admin etc with Exchequer.
Has to be a lack of SDC.
Umbrella no expenses
Easy admin for worker. One employer. Exchequer has all liability for employment rights
etc and all admin burden.
Not as financially attractive as Umbrella with expenses.
Umbrella no expenses
with reduced margin
Easy admin for worker. One employer. Exchequer has all liability for employment rights
etc and all admin burden.
Not as financially attractive as Umbrella with expenses.
These calculations
include our
standard margin
Includes FRS VAT
(14.5%) and our top
package @ £105
per month.
Includes FRS VAT (14.5%)
and our top package @
£105 per month.
Assumes the
agencies cost of sale
will remain the same.
These calculations
include 50% of our
standard magin
CIS PSC inside of IR35 PSC Outside of IR35 Agency PAYE Cost to Agency
Take Home Pay Take Home Pay Take Home Pay Take Home Pay Cost to Agency
£272.80 £275.77 £320.02 £287.38 £360.00
£288.80 £292.84 £336.44 £299.62 £380.00
£304.80 £300.32 £352.86 £311.35 £400.00
£320.80 £312.59 £369.27 £323.44 £420.00
£336.80 £324.65 £385.69 £335.68 £440.00
£352.80 £336.92 £402.10 £347.22 £460.00
£368.80 £349.19 £418.52 £359.73 £480.00
£384.80 £361.46 £434.94 £371.19 £500.00
£400.80 £373.73 £451.35 £383.28 £520.00
£416.80 £385.99 £467.77 £395.17 £540.00
£432.80 £398.26 £484.18 £407.06 £560.00
£448.80 £410.53 £500.60 £419.14 £580.00
£464.80 £422.79 £517.02 £431.03 £600.00
£480.80 £435.07 £533.43 £443.12 £620.00
£496.80 £447.34 £549.85 £454.66 £640.00
£512.80 £459.60 £566.26 £466.74 £660.00
£528.80 £471.87 £582.68 £478.63 £680.00
£544.80 £484.13 £599.10 £490.72 £700.00
£560.80 £496.40 £615.51 £502.61 £720.00
£576.80 £508.68 £631.93 £514.48 £740.00
£592.80 £520.94 £648.34 £526.55 £760.00
£608.80 £533.21 £664.76 £538.41 £780.00
£624.0 £545.48 £681.18 £550.48 £7800.00
CIS
Easy admin for worker. Increased Net Pay. No AWR issues etc. Popular with
contractors.
Has to be a lack of SDC.
PSC inside of IR35
Contractor has PSC vehicle for non IR35 contracts. No risk to Agency.
Financially neutral.
PSC Outside of IR35
Best Net Pay position. Contractor has more choices. Can contract with agencies or
clients. No risk for agencies.
Suitable for genuine contractors. Potential admin burden for agencies in receiving
multiple invoices.
Agency PAYE
Low net pay. Liability or RTW checks, pension, AWR, advances and administration
with the agency. Worker may have an Umbrella co. already.
T 0844 846 5007 E info@exchequersolutions.co.uk W www.exchequersolutions.co.uk Text 07537 415 280 Exchequer Solutions Limited 1st Floor, The Exchange, 1 St John Street, Chester CH1 1DA

10. T 0844 846 5007 E info@exchequersolutions.co.uk W www.exchequersolutions.co.uk Text 07537 415 280
Exchequer Solutions Limited 1st Floor, The Exchange, 1 St John Street, Chester CH1 1DA
Account Management
Tel: 01244 563 134
job@exchequersolutions.co.uk
Sales
Tel: 01244 563 132
keith@exchequersolutions.co.uk
CIS
Tel: 01244 563 131
amanda@exchequersolutions.co.uk
PAYE
Tel: 01244 563 130
sophie@exchequersolutions.co.uk
Customer Service
Tel: 01244 500 195
job@exchequersolutions.co.uk
Limited – Exchequer
Accountancy Services
Tel: 033 3323 1199
info@exchequeraccountancy.co.uk
Get in touch to find out how we can help.
We want to minimise confusion and help our recruitment partners, hopefully saving
you time and hassle! We’re happy to speak to contractors and discuss their individual
circumstances with them directly. Do feel free to pass on our details to any of your
colleagues or workers who have questions or need advice.