| Term: | Explanation: |
| HMRC | HMRC is an acronym of Her Majesty’s Revenue & Customs – the UK government department in charge of taxation and areas such as National Insurance. |
| UTR | A UTR refers to a Unique Tax Reference number. This is a 10-digit code that HMRC uses to uniquely identify each individual or business from one another. |
| Flat Rate VAT | The Flat Rate VAT (Value Added Tax) Scheme is a method where a business or self-employed subcontractor pays a fixed rate of this Value Added Tax to HMRC. This can often mean self-employed subcontractors keep slightly more cash in their pocket on a weekly basis. |
| Compliance | In business, the term compliance relates to how a company adheres to laws, rules and government guidelines. Within the logistics sector, a lot of this focus is on how companies engage with their workforce of self-employed subcontractors and subsequent tax matters. |
| Documentation | When we, or a main contractor refers to documentation, this relates to the series of items which you need to submit evidence of to a new firm before you can become a subcontractor. This can cover everything from evidence of your driving licence, passport and national insurance number to a toxicology test and your UTR. |
| Subcontractor | A subcontractor is a self-employed individual who has an agreement in place to work for a main contractor for a set period of time. For example, the logistics sector engages with a large volume of self-employed subcontractors to drive delivery routes all over the UK. |
| Onboarding | The term onboarding describes the processes and stages that an individual has to go through during the recruitment process and as they begin to work for a new main contractor. This can cover everything from supplying banking and payment information to passing company inductions and other tests. |
| Carrier | A company or individual that transports goods or people. |
| 3PL (Third-Party Logistics) | Outsourcing logistics and supply chain management to a third-party provider. |
| Last-mile delivery | The final stage of the delivery process, where goods are delivered to the end consumer’s doorstep. |
| Multi-drop delivery | A logistics and transportation scenario where a driver or a delivery vehicle is responsible for making multiple stops or deliveries during a single trip. |
| MCP (Main Contractor Portal) | The Wise Platform is commonly referred to as the MCP – Main Contractor Portal. |
We hope that the above glossary is useful, but if you would like to speak to an expert from the Wise team about how our software can save you time, money and stress then click here.
