Understanding the legislation

In 2006 the Government released a Finance Bill containing the Managed Service Companies Regulations (MSC).

This legislation specifically covers payments to Contractors that are not solely made on a PAYE basis, e.g. Personal Service Companies (PSCs), CIS payments under deduction or payments to sole traders.

GAIN is a Contractor Payment Solution, not a Managed Service Company, so is not subject to this legislation for Managed Service Companies. GAIN is engaged to manage the income payments of our Contractors on a weekly basis. All payments made to an individual by GAIN are on a PAYE basis, with all of the legal deductions required for Tax and National Insurance contributions processed correctly.

For more information, check HMRC's MSC guidance notes

Minimum wage legislation

No workers paid using the GAIN payment solution receive payments below Minimum Wage Legislation.

Working Time Directive

Contractors are NOT employees of the Limited Company, they are Directors. Therefore, we believe that they fall outside of the Working Time Directive Regulations.

Workers using the GAIN payment solution would normally benefit from being paid a higher hourly rate than if they were engaged on a PAYE basis, so this, together with the benefit of claiming back all necessary work related expenses, should increase their NET take home pay dramatically. Workers using the GAIN payment solution often find they are much better off than their PAYE counterparts.

AWR

Contractors that benefit from the GAIN Contractor Payment Solution, are NOT employees. They are Directors, paid on a PAYE basis, and therefore we believe that they sit outside of all AWR Legislation.

We are that confident of this fact, that we will provide both a Recruitment Business and their Clients with an Indemnity against any claims brought forward under the AWR Legislation by a Contractor being paid under the GAIN scheme.

Pension Requirements

Workers are NOT employees of the Limited Company, they are Directors. Therefore, we believe that they fall outside of the new Government Pension Requirements.

IR35 legislation

The Limited Companies that you are engaging with all have multiple Directors. They are not single person Limited Companies.

MSC Legislation and 3rd Party Debt Transfer

Due to the way the GAIN Contractor Payment Solution is structured and operated, we believe that we fall outside of the MSC Legislation, issued in 2006, and that you would not be at risk of any potential penalties due to 3rd Party Debt Transfer.

GAIN is not a Managed Service Company.

Tax & National Insurance Liabilities

Our Contractors' Tax and National Insurance Liabilities are calculated and dealt with by GAIN on behalf of them as individuals and their Company.

Payments and reporting are made to HMRC in line with current legislative requirements.