Agency PAYE

What is the Agency PAYE option?

Some recruitment firms pay through their own payroll as an Agency PAYE worker.

Agencies will generally offer you a lower than the rate they’ll offer to an Umbrella Company or when you work through your own Limited Company, or as a Sole Trader. The reason is that aside from the administration costs of running a payroll, Agencies have to account for employers NICs, holiday pay and other statutory benefits, on top of what they pay you. They’ll often, therefore, pass on these cost savings in an uplifted rate if you work through a third party such as an Umbrella company or your own Limited Company.

Choosing the Agency’s PAYE option means you only deal with one organisation, and it is, therefore, can be a straightforward option.

Of all the ways of operating, the Agency PAYE option involves the least administration, but generally the lowest return on your income.

Is the Agency PAYE option right for me?

The Agency PAYE option is most suited to you if you:

  • only intend to contract for a very short period
  • don’t have travel or subsistence expenses
  • want low administration or don’t want to involve a third party
  • earn at a rate of pay (usually £10.00 per hour or less) that does not justify the margin of working through an Umbrella or the accountancy fees your own Limited Company

However, whatever you choose is entirely dependent on you and your personal circumstances. Get in touch to speak to an expert, to discuss what options are available, so you can choose the right solution to you.


I'm an accountant myself but I must say I couldn't have done without the support of First Freelance. – Mugu S.

What I love is that they took the time to meet me in person. I certainly feel I can trust them. – Nadia D.

First Freelance have provided me with excellent support every step of the way. They genuinely care. – Bhargavi P.

The team are knowledgeable and their customer service is outstanding! – Chieme M.

I've worked with many accountants over the years. None have come close to First Freelance. – Daniel J.

They genuinely care about my business and personal finances. – Jennifer W.

First Freelance have provided me with an outstanding level of expertise. I highly recommend them! – Linda P.

I love having 24/7 visibility of my business finances. The 'live' business bank feed is an excellent feature. – Guido M.

What I love is that they took the time to meet me in person and explain everything clearly. – Olufunmilayo A.


Joining First Freelance couldn't be simpler, please provide some basic details and a member of the team will be in touch with you shortly!

Fill out this form to request a callback

You may want to consider:

There are additional factors you may wish to take into consideration. Simply fill in the
form below for a free personalised report tailored to your personal circumstances.

Sign up to our newsletter to receive important tax updates and news that is relevant to you.
We promise to never spam you!