Giant as a Deemed Employer
When an assignment is determined to be inside IR35, the party paying the contractor’s PSC is required to apply PAYE tax deductions. This party is often referred to as the “deemed employer.”
In this arrangement:
You continue to operate via your PSC
Giant (via Giant Business Connect) acts as the deemed employer for tax purposes
Income Tax and National Insurance are deducted before payment is made to your PSC
Deemed employment relates only to tax. It does not create an employment relationship, so you would not be entitled to employee benefits such as holiday pay or Statutory Sick Pay. If you wish to continue working via your PSC on an inside IR35 assignment, a deemed employer must apply PAYE deductions in line with IR35 legislation.
Giant the Umbrella Company
When working via Giant’s umbrella company, you become an employee of the umbrella company.
In this arrangement:
You are paid through PAYE
You are entitled to statutory employment rights, such as holiday pay and Statutory Sick Pay
You may also receive additional benefits offered by the umbrella company