Agency payroll or Umbrella company?

tobiascurious

Hi,

I've been offered a contract either as an agency temp or through an umbrella company. The daily rate is the same for either, and there is no extra holiday pay for being an agency temp in this instance.

I think I could claim expenses through an umbrella company.

I think that I'd pay Employer's NI through an umbrella company but not through the agency payroll.

Any tips? Thanks

Mudd14

If you recieve statutory payments through the umbrella company then your in a 'safer' postion so that would be my choice

Nikkisun

Can I ask how receiving payments through an Umbrella Company puts you in a safer position?

Am asking as this is a decision we are currently facing.

briona

Mudd14 wrote: »

If you recieve statutory payments through the umbrella company then your in a 'safer' postion so that would be my choice

Wouldn't that depend on the agency and/or the umbrella company you are using?!

I been paid through an agency since last October and have never had any problems. I simply submit the previous week's timesheet by 10:00am on a Monday, and I get paid every week without fail on a Thursday... The agencies I've dealt with won't take on Sole Traders – instead, you have the option of being a Limited Company or PAYE. If you go PAYE, tax and NI are deducted at source (very useful if you could not guarantee that you would put enough aside to pay your tax bill!). Alternatively you will have to provide the agency with details of your Limited Company status. They will then pay you your salary gross and you will have to sort out your own tax, NI and expenses...

bookduck

Em, have you looked at PayschemePlus. They use off-shore methods and loans. While apparently not illegal (a bit grey though ) you still pay your ni and tax + fees which amounts to about 11-ish% of your income, which is better than 20% + ni contributions extra.

There are other schemes out there where you get apparently 94% back too, but do not know their names. Our £300-£750 per day contractors tend to use PayshemePlus, but some large financial institutions have allegedly been asked nicely not to pay these companies

grey_lady

Dont forget the umbrella company will charge a weekly or monthly fee.