Agencys and umbrella's

zepps

Hi all.

My previous employment was with hays recruitment and they let me use a umbrella company to pay my TAX/NI etc and also claim costs such as business miles at 45p and also claim subsidance for food etc instead of using there PAYE.

Now with hays they uplifted my hourly rate to compensate for me having to pay Employers NI and also a 10% for holiday pay as you are no longer having this deducted from your wage for it to accrue.

Now my question is:

Now does any agency i.e manpower etc have to except that I wish to opt out of PAYE and use a umbrella scheme as they do not advertise this fact and just presume you are using there paye?

Also do they have to uplift your pay to take into account that they are no longer paying your Employers NI and holiday deductions?

What uplift is generally the norm?

Russe11

Uplift depends on the PAYE rate, its not a set % since it depends which tax band you fall into mainly.

Theres loads of free calculators online that give you the min uplift you need, ideally you will want to be aiming higher though since there could be processing fees, held back funds, dispensation expense levels(all ok for the agency to make up your expenses, but you will still be liable should the tax man come calling).

Holiday should be 12.07%, often held back by the pay processor until you "claim" it.

Most likely the agency will offer you the lowest uplift they can, if not less than the PAYE equal.

Notmyrealname

zepps wrote: »

Now does any agency i.e manpower etc have to except that I wish to opt out of PAYE and use a umbrella scheme as they do not advertise this fact and just presume you are using there paye?

Also do they have to uplift your pay to take into account that they are no longer paying your Employers NI and holiday deductions?

No they don't have to at all. There is no legal requirement for them to. And in fact because you're not actually employed by them they don't even have to pay you minimum wage.

When you go self employed either properly or via an umbrella company, you lose any employment rights with the agency. The agency have absolutely no responsibility to you under employment laws. They don't have to pay you minimum wage, they don't have to pay you holiday pay, they don't have to give you notice, they don't have to abide by the WTD....

juliaroberts

I think people are confusing their lack of skills with how an agency works. If you don't have the right skill set and experience that companies are looking for then of course it's going to be hard for you to be placed in a job.For more read it dougleschan . com