Quick links

PAYE set up

What are the steps we need to go through to setup our account ready to fund PAYE placements?

1: Register with HMRCs PAYE scheme
2: Complete Sonovate’s new agency form
3: Select a pension provider (if you already use a provider, great, we'll just need a few details)

How do we register with HMRCs PAYE scheme?

Why do we need to register with HMRCs PAYE scheme?

  • It's a legal requirement to be enrolled in HMRCs scheme. However, it's nothing to be worried about. Being registered ensures your tax affairs are kept neat and tidy. 

How long does the registration process take?

  • It can take up to five working days for HMRC to respond, so we recommend getting this set up 1-2 weeks before you want to fund a PAYE placement through your account.

Why do I need to complete Sonovate's 'new agency form' as well?

  • HMRC require different information to Sonovate. The details you provide on our form ensures your account is setup perfectly to fund PAYE placements.

End to end process overview

Quick step-by-step guide to funding placements

  • Add the placement into your account and send the new starter form on a Thursday by 10am to Sonovate for funding the following week.
  • Send both your client and candidate contracts to customerservices@sonovate.com by 10am on the Friday.
  • If the candidate is a new starter, please send the new starter form to paye@sonovate.com by 10am on the Friday.
  • Sonovate receive signed timesheets by 12pm Tuesday for payment the same week.
  • Sonovate will issue the payroll summary and payslips to you on a Wednesday afternoon.
  • Payslips will be issued to the candidate by 5pm on the Thursday
  • Sonovate pay margin to your agency (excluding PAYE/NI contributions) and pay contractors their net pay (after NI/Tax deductions) clearing in accounts on a Friday.

New starters

Where do I need to send the new starter form and when is the deadline?

  • Please complete and send it to paye@sonovate.com
  • New starter form must be submitted by Friday 12am for the candidate to be paid by the Friday of the following week.

Do I complete the new starter form for every candidate?

  • Yes

New starter forms

Timesheets

  • Sonovate needs to receive signed timesheets by 12pm on a Tuesday. 
  • If the deadline of Tuesday 12pm is missed, the candidate will be paid the following Friday.

More on timesheets here

Candidate holidays

How is holiday accrued?

  • If a candidate receives the standard 20 days plus 8 bank holidays, they accrue holiday at 12.07% of the hours worked.
  • Click here to use Gov.UK holiday entitlement calculator
  • More on holiday entitlement from Gov.UK

How many holidays has the candidate accrued?

  • Please check the most recent payslip sent to your agency. 
  • Under ‘employee details’ it will show the holidays remaining in hours.

How does the candidate submit holidays?

  • Candidate submitting online timesheets

    When the candidate is completing their timesheet they need to select ‘Annual Leave’ pay rate
  • Candidate submitting manual timesheets

    Your agency will need to email timesheets@sonovate.com detailing what holiday is to be processed. Please note: this needs to be submitted by the 12pm Tuesday deadline as per normal.

Do candidate holidays affect our margin?

  • Yes, the 'cost' of candidate's taking holidays will be charged to your margin, so please factor this in when negotiating charge rates with your clients.

Payslips

When will the candidate(s) receive their payslip?

  • Payslips will be emailed to the candidate(s) by Thursday 5pm.
  • A password will be sent to the candidate(s) with their first payslip from Sonovate.
  • The password will be the candidate's NI number. For e.g. QQ123456C/

Example payslip

Pension

What pension provider should I be using?

  • We recommend you look at pension providers for your business, unfortunately we are unable to give advice on this.

Who is responsible for creating my pension account?

  • Your pension provider is responsible for creating your account.
  • However, Sonovate can assist you with setting up your pension account for £100 +VAT

When does the candidate start contributing to a pension?

  • You need to instruct us whether you would like to postpone your candidates for the first 3 months. Then they will start contributing 5% and the agency will contribute 3% on earnings above £118 up to £962.

Can a candidate opt out of pension verbally?

  • No, candidates must opt out of pension via the pension provider.

Leavers

What is the process when a candidate leaves my agency?

  • Firstly, please end the placement early on the portal on the last day the candidate works. To do this, enter the placement record and click 'finish early'.

HMRC

Who is responsible for making payments to HMRC?

  • Your agency is responsible for making sure payments are sent to HMRC each month.
  • Sonovate will issue a P30 to you at the end of each tax month which instructs you the amount that needs to be paid, and where to pay it and how to reference it.

What's the deadline for payments?

  • The payment deadline for each month is the 19th.

Queries

Where do I send my queries and amendments to be made?

Deadlines

Agency deadlines

  • New starter: 10am Friday
  • Placements: 10am each Thursday
  • Client and candidate contracts: 10am Friday

Candidate deadlines

  • Timesheet submission: before 11am on Tuesday

End-Client deadlines

  • Signed timesheets: before 12pm on a Tuesday

Reports

When and how will my agency receive the PAYE summary report?

  • When: Each Thursday
  • How: You’ll receive an email with a PDF attachment containing a full PAYE summary report for that week.

Example of report summary

Calculator

Punch in some numbers to calculate key PAYE figures.

https://www.sonovate.com/paye-calculator/

Documents and links

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