Who bares foreign exchange (FX) risk?
We always pay the Freelancer in the same currency as we get paid by the Principal. If the Principal and the Freelancer agree upon other currency that their home currency or it they come from different monetary zones they have to agree upon their terms of payment including currency of payment. If not otherwise agreed, FX risk shall be borne by the Freelancer. Paygency shall never compensate any of the parties for any loss incurred due to FX movements.
If you get paid in USD, can you pay me in EUR?
Unfortunately, we cannot do that. We are not a financial institution and cannot exchange currencies. The Freelancer shall always be paid in the same currency as the Principal makes payment to the Provider.
What is the underlying currency?
The Principal and the Freelancer can agree upon underlying currency. Provider can invoice the Principal in all major fiat currencies e.g. EUR, USD, GBP, JPY, and CHF.
How do I start?
First you need to register and make sure that your Principal (the company you are going to work for) is already registered. You have to fill in some personal information and upload couple of documents so we can perform KYC and AML procedure.
How do I specify the description of services provided in the Specification?
Be as specific as possible. Also, your Principal may require you to specify services provided in detail as he may eventually need to demonstrate that services were actually provided.
How do I bill my Principal after work done?
After work is done (e.g. at the end of the month if not otherwise agreed), you choose “send statement” in your Control Panel. First, you fill in Confirmation Statement (Specification of Services Provided). Second, you choose your Principals, but make sure he is already registered. Third, you send him the document for approval. After he approves the document, we send him the bill. And when he pays the bill, we make payment to your account.
What is KYC?
Know your customer (KYC) refers to due diligence activities that financial institutions and other regulated companies must perform to ascertain relevant information from their clients for the purpose of doing business with them. Know your customer (KYC) is the process of a business identifying and verifying the identity of its clients. The term is also used to refer to the bank and anti-money laundering regulations which governs these activities.
What is AML?
An anti-money laundering (AML) program is a set of procedures designed to guard against someone using the firm to facilitate money laundering or terrorist financing.
What is the fee for your services?
Our commission is 8% and is charged on top of fee earned by the Freelancer. However, our fee cannot be lower than 40 EUR per invoice.
When shall Freelancer receive payment for work done?
The Provider shall invoice work performed by the Freelancer to the Principal. Payment to the Freelancer shall be made only after payment received from the Principal.
What happens if I do not get paid entirely?
If that happens, we shall let you know that the invoice had not been paid in full by the Principal. However, it is very unlikely that this happens because Principal must confirm your Confirmation Statement (Specification of Services Provided) before he receives our invoice. Nevertheless, if that does happen we first pay you proportionate part of money received and then start with the collection of the remainder.
Do you withhold personal income tax?
We withhold personal income tax in case you are UK tax resident only. If you are tax resident in any other country we shall not withhold any tax and you will get paid entire amount paid by the Principal without any withholdings.
Will you report my income to my tax authorities?
We shall report about your income to HMRC in case you are UK tax resident only. If you are tax resident in any other country we shall not do any reporting to your local tax office. Generally, you are liable to report foreign-sourced income yourself. Do investigate that issue with your local tax office or local tax advisor.