New to agency work - Help needed

jill36_2

I have been offered 3 months work through an agency starting Tuesday.

Has anyone heard/had experience of being paid through a 3rd party. It's a company called Ducas Payroll, or Maxipay (see links)

http://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&ved=0CE4QFjAA&url=http%3A%2F%2Fwww.ducas.info%2F&ei=9gbQUryKJOas7QbX0IHYAg&usg=AFQjCNH6zoAEorN_ewCOswnF4re4ejph2Q&sig2=E2qLinfl2ZrXKorIoEbS3Q&bvm=bv.59026428,d.ZGU

http://www.ducas.info/pages/how-it-works.aspx


Thanks x

patman99

Ducas is what is known as an 'Umbrella' company.
Basically, you send your signed timesheet to the Agency. They then pay Ducas who in turn, deduct a fee & pay you the rest.

By doing this, the Agency legally avoids having to pay you holiday pay as you are treated as 'self-employed'. I believe it also gives them a get-out clause with regards to the AWR (2011) & wage-matching.

You should be given the chance to submit a claim each week for expenses. These are paid as a Tax-free amount. If you are working 36+ hours each week & you are earning £10+ p/hr, then with your expenses taken into account, you should more than cover the fee charged by Ducas in the Tax you will avoid paying.

If you are likely to be earning less than £10 p/hr, then it really isn't worth it unless the Agency will let you bill them as a proper registered Limited Company (in which case, the 'company' bills them each week. The 'company' then pays you).

Personally, I would avoid Agencies that pay this way like the plague unless they allow you to bill them through your own Limited co. (you can register a Ltd co. for as little as £20). It does mean that you would need to pay yourself as a PAYE by deducting the Tax & NI yourself before paying the rest out in wages (and don't forget that you can still bill the 'company' for expenses in order to lower your Tax).

If you intend to register with many Agencies and some of them insist on paying through an umbrella or Ltd co., then I would definitely go down the self-registered Ltd co. route as it creates one pay-point to handle billing & payments.

brightonman123

I would go for straightforward PAYE. Less paperwork, simpler to calcluate net pay..

marybelle01

brightonman123 wrote: »

I would go for straightforward PAYE. Less paperwork, simpler to calcluate net pay..

Many agencies no longer give you this option. It is an umbrella company, your own limited company, or they won't give you any work.

jill36_2

I was given the choice. The agency said they would pay me £6.50 if I was paid through them, or £8.05 if paid through Ducas. I would also be able to claim mileage @45p and Ducas would offset this expense from my tax. Earning the extra hourly rate seemed a 'no brainier'

Has any one here used an umbrella company and found it beneficial?

jill36_2

Has anyone here had any experience of using Umbrella companies.

brightonman123

a colleague doing same job, through same agency, used umbrella for payment-

hardly any difference in take home pay, though any holiday taken was unpaid, as already 'built in' to his rate..

patman99

According to Ducas's own website, you need to be earning at least £9 p/hr to qualify to register.

They also do not disclose their fees which I find unusual as it is one of the first things I would want to know prior to registering.

I notice that they do pay holiday pay which is accrued at the rate of 12.07% of your weekly earnings, but they don't state if this is deducted from your earnings each week or paid on top from the Agency.

I am registered with a few agencies including Prime Appointments. They pay direct UNLESS you are placed in a position via their technical team (basically machine setter/operators) in which case, you are paid through an umbrella company. The fee their chosen U/C charges is £15 a week.