Advice please - best way to get paid??

TracyC007

My OH has always worked in construction industry, and been employed directly on PAYE. The last company went into administration and he now has a new temporary job through an agency working for a council on refurbishment contracts.
The agency have suggested he be paid through one of two schemes - through the CIS scheme, or via an umbrella scheme.
The sample payslip for the CIS scheme shows a flat deduction of 20%, and I believe he would then be liable to fill in a tax self assessment form annually. The deductions on the umbrella scheme are more complex, with both employee and employers NI, holiday pay deductions, expenses, PRP and show a lower net pay.
Q's- under the CIS scheme, will he need to put more money away to pay additional tax/NI? What are the pros & cons of either scheme? Both examples show a weekly charge of £23 to administer - are their cheaper schemes available?
We are new to this so all help appreciated

podperson

Sounds like the umbrella scheme is acting as a limited company as he would be getting paid as an employee while CIS is paying on a self-employed sub-contractor basis. CIS is basically just deducting the tax from any work done at basic rate (this is on labour only so if he has to provide his own materials make sure the total being taxed reflects this). He can then claim back his tax allowance (this used to be at the end of the tax year but I believe they have recently changed this so it can be claimed on a more regular basis now). If he is doing it this way he will still need to pay his own NI and won't get any holiday pay which is why the net amount would come out as higher. Not sure on the weekly charge I'm afraid - that must be something specific to the agency.

TracyC007

How should he go about paying the NI??