Update - need to hire an agency for my employment - PAYE umbrella help

maximise

I've chosen to take employment with a past employer in the environmental engineering sector whom I enjoyed working for. I was previously paid directly but due to recent changes in their accounting I must source an agency.

I have been advised to find an agency who can ensure I am safe in terms of NI, tax, student loan. The employer will pay the agency who will pay me, minus fees expectedly.

What questions should I ask when scoping out the various agencies?
Criteria I can think of:

1. % fee charged
2. ...
3. ..
4. .

I have not done this before so any advice will go a long way.

Thanks

fengirl_2

So you have no security with this employer who will not be employing you. If you have a grievance against him, you cannot persue it and he can let you go at any time.

maximise

That's correct. I want to work for them whilst I apply for other work.

They are trusted and I have experience with them.
If I decide to stay, I can if there are long-term prospects.
If I decide to go, I can at short notice.

I just need to find a suitable agency but I have no experience of doing so.

Smiley82

Hi Maximise

Where abouts are you located and what sort of work will you be doing? This sort of information will help us to recommend an agency. I'm currently working through agency, and while fengirl's comments are correct, there is nothing wrong with working through an agency.

Basically you call the agency, and tell them that you have an existing contract which you need to be managed by an agency. That you have already agreed rates/terms etc, and just need them to be the middle man.

Let me know your location and I'll see if I can help.

maximise

Located in North Herts and will be doing project engineering based work including commercial/contractual/practical stuff. Thanks, it seems pretty straightforward but I thought I'd ask.

Smiley82

Personally, not knowing that are too much, I'd just call someone like 'Reed' and see what they said. Having contracted through them before, they have quite a good system set up for Agency Work.

Otherwise, I would search similar jobs in your area/field, and then call the recruitment companies advertising them and ask them if they are willing to take on an existing contract.

Main thing is that your hourly rate should be set, and the fee they charge should be billed to the client, not you. So if you have agreed on £20/hour, then they can bill the client £20/hour +15% say....and then you'll receive the £20/hour less tax, NI etc, and they'll get the 15%.

Make sense?

maximise

Makes sense yes thanks.


An agency recommended to me is keen to take me on. They do not deduct PAYE, tax, NI etc. and so I am required to setup a limited company or pay an 'umbrella' limited company to sort out those things.

There is another agency who is an agent for an exisitng employee at the company. Apparently this agency deals with all of that stuff for you - PAYE deductions etc.

Not sure which one is better for me financially... and have I got it right?
1. setup my own ltd. company - save tax but extra paperwork?
2. pay an umbrella company £10-20 per week and still have to fill out paperwork but less of it and still pay less tax?
3. go with the other agency who take care of it all

What would you do and why?

Many thanks

jackomdj

My OH is a contractor & he used to use an umbrella company but he has (as recommended by many others in his industry) this time set up his own ltd company. He uses an accountant, but it works out cheaper than the umberella company & also he seems able to get more deductions.

HTH
Nicky

maximise

Thanks for your input jackomdj. I guess if your OH uses an accountant and it still works out cheaper than an umbrella, your own ltd. co. is the way to do it.

aylesby

If you are new to umbrella companies then
http://www.umbrellasupermarket.com is a useful to review their so called top 100 and it gives you some visibility of the dangers you could gt into.

maximise

Thanks all, some very useful information and links. I decided to find an agency that carries out all required deductions on my behalf. I am pleased that all I need to keep on top of is filling out my time sheets!