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.JOIN NOW