PAYE or Umbrella co...
 

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[Closed] PAYE or Umbrella company?

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Posts: 78
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Topic starter
 

Just about to start a temp position for 3 months or so. My first time as I have always had permanent positions.
Been asked if I want to be paid PAYE or through an umbrella company, my hourly rate will be £1.75 higher if I take that option plus been told I can claim work expenses, in return the umbrella charge me for this service. And also no holiday pay as it is incorporated in the slightly higher rate.
Not sure which option to take, any others on here have experience of this?


 
Posted : 10/04/2012 10:13 am
 dobo
Posts: 3
Free Member
 

Why not ask the umbrella company if you will be better of financially with them. I guess it depends how much they charge for invoicing and how frequently the umbrella have to invoice, weekly, monthly, will that be cheaper?
Do you need the holiday pay for 3 month's?
Is there chance of an extension, if so bear in mind AWR if you go PAYE and over 12 weeks they may have to pay you more or give additional benefits.


 
Posted : 10/04/2012 7:27 pm
Posts: 7
Free Member
 

ask both for a quote of take-home. They may not be too willing but my takehome improved by over 10% when I went PAYE.
Most importantly the Umbrella company utterly refused to take my issue seriously when I said they were underpaying me (very defensive) and wouldn't supply a proper explanation.
They just take a margin from your hard work but offer little in return IME...
WHichever you choose, you may be able to swap anyway


 
Posted : 10/04/2012 9:20 pm
Posts: 7
Free Member
 

double post


 
Posted : 10/04/2012 9:20 pm
 mrmo
Posts: 10687
Free Member
 

depends on the wage, but when i was in this position i didn't have a choice and was worse off using an umbrella, i also suspect you have even less rights as your not employed by anyone so if they don't pay you...

yes i got shafted 👿


 
Posted : 10/04/2012 9:29 pm
Posts: 0
Full Member
 

DIY, set up a Limited Co and submit your own returns, you aren't going to earn a massive amount in such a short time (huge assumption, none of my business) and anything you charge against it can be dealt with fairly easily.
I'm Ltd, peasy setup..


 
Posted : 10/04/2012 9:38 pm

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