Can an agency force me to use Agency PAYE instead of Umbrella

doraappa

Hi All

Sorry if this was asked before but I couldn’t find an answer after lot of searching. I am new to contracting and have an inside IR35 offer. The agency has informed me that the payroll will be through Agency PAYE. 

Umbrella company suits me more (sick pay, 3 months.., mortgage purposes) etc. Is it reasonable for me to ask the agency to change it to umbrella instead of agency PAYE? Or I have no say/option on this but to follow what the agency says?

Appreciate your kind responses 

Sandtree

What do you think you'll get via an umbrella that you wont get via the Agency? You are still an employee so still get SSP etc

As with every job offer, its a negotiation and it will depend on how much the client wants you etc. Certainly I've successfully negotiated non-negotiable elements before but that was when the client had rejected a dozen people before interviewing me and the agency didn't want to go back and say the deal had fallen apart because of one of their terms etc

doraappa

Thank you for your reply. Online search is saying umbrella will give Continuity of employment as it will help when applying for mortgage( i am due for renewal later this year). Pension schemes: I will have ability to pay more into it through salary sacrifice. These are all I can see but not sure if this is possible via agency paye.

Andy_L

They can't force you to but, if you want to work through them and that is the only option they offer, then your choice is to either accept it or go elsewhere

Sandtree

doraappa said:

Thank you for your reply. Online search is saying umbrella will give Continuity of employment as it will help when applying for mortgage( i am due for renewal later this year). Pension schemes: I will have ability to pay more into it through salary sacrifice. These are all I can see but not sure if this is possible via agency paye.

Continuity is true assuming you are always landing inside IR35 roles and each of your future agencies are happy with your choice of umbrella (some will only work with some). If you landed an outside IR35 would you still stick with the umbrella though? 

Pension scheme should be no difference.