Limited Companies

Some contractors choose to work through a Limited Company, otherwise known as a Personal Service Company, where they are responsible for fulfilling year-end accounts, insurance and tax returns.

Working through Personal Service Companies or Limited Companies

Many contractors in the UK choose to work through their own Personal Service Company (PSC), more commonly referred to as a Limited Company. This is a business-to-business relationship where Morgan McKinley will make a payment directly to a Limited Company. There are administrative duties that contractors are responsible for when operating in this way, these include; fulfilling year-end accounts, insurance and tax returns. Please note, Morgan McKinley only engages with companies where contractors are the Director of the PSC and there are no more than 3 Directors of the company. 

Once a contractor is successful with a new placement, our dedicated Contractor Experience Team will support them through the onboarding process. They will receive an onboarding pack via email to explain the timesheet and payment process. They will also be introduced to Gateway, Morgan McKinley’s online contracting portal that provides secure access to personal assignment information. Contractors will also be contacted by our Pre-Employment Screening (PES) Team. Along with standard compliance obligations including right to work checks, contractors will be required to supply the following compliance documentation:

  • Certificate of Incorporation from Companies House 
  • Proof of limited company bank details i.e. bank statement in Limited Company name 
  • VAT Certificate (if applicable) 
  • Limited Company Insurances* (outlined below) 

21 Day Payment Terms

Morgan McKinley operates 21-day payment terms for all Limited Company contractors. This means the first payment for the first week worked will reach the contractor 21 days after the first Friday in their placement, provided the timesheet is approved by the close of business Monday for the previous week (our timesheet deadline). After this, on the basis that timesheets have been approved in line with the timesheet deadline, Limited Company contractors will receive payment every Friday. Contractors will receive a 21 day payment terms form to sign as part of the pre-employment screening process which provides further information.

Self Bill 

Morgan McKinley operates a self bill payment process with our contractors. This means contractors do not need to produce an invoice, which speeds up the payment process and reduces the administration process for contractors. This scheme has no impact on IR35 and is fully HMRC compliant. Self bill invoices will be available for contractors to download each Friday via Gateway.

Limited Company Insurances*

Our clients are always looking to protect their business and ensure that if any issues arise as a result of services provided by temporary workers, the appropriate insurance coverage is in place.

Morgan McKinley requires candidates operating through a Limited Company to have appropriate insurance cover in place to ensure businesses are protected in case of any claims that may arise and to ensure compliance with the requirements of the client prior to starting an assignment.

As a minimum, Morgan McKinley requires the below insurances to be held, regretfully we are not able to engage with a PSC which does not have insurance policies to these required levels. The Pre-Employment Screening Team will advise contractors of the different levels required in line with client specific policies.

Professional Indemnity minimum £1,000 000
Covers contractors if they are accused of professional negligence, making an error or omission or give any advice which results in a client losing money.
Public Liability minimum £1,000 000
Covers a contractor if their actions lead to anything being damaged or anyone injured, or property as a result of the services provided.
Employers Liability minimum £5,000 000
Covers contractors for employee illness or injury as a result of work undertaken on behalf of the limited company. This ensures there are no gaps in coverage for clients and will also cover data protection and criminal legal claims.

Contractor Insurance providers

Whilst there are several insurance brokers in the UK market, we recommend the following who are specialists in the Contractor market and will cover contractors’ main exposures and meet their contractual obligations. Click on the logos to visit the relevant websites.


Contact details for Tapoly:, call on +44 (0)20 7846 0108 or visit

Kingsbridge logo

Contact details for Kingsbridge: Call on 01242 808 740 or visit


Contact details for Hiscox: Call on 0808 1599 276 or visit 

Victoria Walmsley's picture
Managing Director