PAYE or Self Employed - Agency/Umbrella Company

Aletank

I have a job interview on Thursday with a local well known company, Stoves Ovens.
The job was advertised with Gap Personnel at £12.50-£14 per hour for 37 hours per week.
When I questioned the rates I was told the £12.50 is for PAYE which includes holiday pay etc. The £14 wouldn't include holiday pay, I'm guessing it's like bein self employed. The contact from the agency said I'd be working for a Umbrella company and he would discuss all this/rates of pay after my interview if I'm offered the job.
I'm thinking I'd be better taking the £14 as self employed if that is what I'm offered ? thinking its a better rate, I'd be paying Class 2 NI which is £2.75 per week I think, so £2.75 NI with that better rate ?
Any views on this greatly appreciated

agrinnall

There's really not much difference between £12.50 with holidays and £14 without, statutory holidays are worth around 12% of pay, and £12.50 + 12% comes out very close to £14. I'd wait to get full information on the options before making a decision.

Pennywise

Be careful. It may not be self employed, it may be via an agency/umbrella, in which case they may take the employers NIC, holiday pay and their charges out of the £14, leaving you worse off.

"Self employment" isn't a choice - it basically means you're in business rather than being an employee, and there are hoops to jump through to prove you're a legitimate "business" - not just a matter of you or your employer saying so.

Agencies etc tend not to pay as self employment - the option is an employee under PAYE or an employee via an umbrella.

You need to check very carefully the exact terms of each option, and the costs etc of chosing the agency/umbrella option.

Aletank

Pennywise wrote: »

Be careful. It may not be self employed, it may be via an agency/umbrella, in which case they may take the employers NIC, holiday pay and their charges out of the £14, leaving you worse off.

Agencies etc tend not to pay as self employment - the option is an employee under PAYE or an employee via an umbrella.

Thanks for the replies so far ! Yeah this umbrella option does sound like what he was on about and said he'd explain more if I was offered the position.
All these agencies with their tax dodges/umbrella/travel schemes etc are very confusing, shouldn't be allowed, all people want is a proper job direct with a company.