This last couple of weeks I have noticed that a number of agencies are quoting a rate… maybe/maybe not including ‘umbrella’ or ‘outsourced’ - beware!
You should be quoted a PAYE rate according to the REC (Recruitment & Employment Confederation). You can request umbrella or limited but it is an option.
To attract attention agencies quote the umbrella or outsourced rate. This means you will be charged £25-30 and employers NI at 13.8% (in addition to usual employee 12%). Gulp - on a rate of £10/11 per hour you will incur an additional deduction of £65 per week approx. As of 2016 the government have attempted to end self employed umbrella and agencies have now chosen to outsource payroll at your expense. As I said to the REC agencies are attempting to (to use the legal term) deliberately ‘with hold information’.
Do check the rate quoted with an agency before agreeing - PAYE will be £1.50 to £2 LESS. So a £9 per hour outsource is likely to be less that minimum wage? YES!!!
Some agencies are using another company to do their payroll and if the rate is PAYE they will bear the cost - that’s what I had in a previous job which is fine.
Obviously avoid agencies but so many companies use them… often claiming the job is temp-to-perm but seldom is. But between jobs one has to get in some cash to survive whilst looking for a proper job. Best option I have found is get a job that involves sat work and so one gets a weekday free instead - often Mon or Tue to attend interviews!
I used nova as when I was ADR employment agency they don’t offer payers.
I’m still trying to get a definite answer from them when I asked if they are a tax saving company as I need this for my tax return■■?
Agencies will try any tactic to chance their arm and save money (or make more money for themselves off the back of your hard work). It’s like PPE, according to a Health and Safety Executive chap I did a course with told us any organisation (including agencies) that offer you work should supply PPE themselves.
I’m signed up with numerous agencies and only two of them have bothered to give me a hi viz vest, nothing else.
andy_s:
Agencies will try any tactic to chance their arm and save money (or make more money for themselves off the back of your hard work). It’s like PPE, according to a Health and Safety Executive chap I did a course with told us any organisation (including agencies) that offer you work should supply PPE themselves.
I’m signed up with numerous agencies and only two of them have bothered to give me a hi viz vest, nothing else.
True - I have never had PPE from an agency and yet they are one’s employer. I am just hoping that firms will start to realise the value of their own recruiting… but it is going to be a while yet I fear. What does an agency lass know about HGV?
andy_s:
I’m signed up with numerous agencies and only two of them have bothered to give me a hi viz vest, nothing else.
And if they gave you a pair of boots mate, I bet they would be so crap you’d rather wear the boxes they came in!
andy_s:
Agencies will try any tactic to chance their arm and save money (or make more money for themselves off the back of your hard work).
Spot on!
They are all scumbag leeches, but for a Newbie they can be a good way to get into the industry and see a wide spectrum of work.
I’ve had almost as many gig’s as the Beaver, I’ve just not needed to by a second wardrobe to put all the company uniforms in!
As for the OP’s opening post, Umbrella schemes can vary and some are very dodgy indeed. Some will pay you minimum wage and the rest as a bonus, and if they do that, then expect the tax man to come knocking at some point. I’m PAYE all the way since they changed the tax laws where you can’t claim travel allowance/mileage. Yes they will always quote the Self Employed rates to try and sucker you in, so ask what their PAYE rates are, which will probably £2.50 to £3 lower. And if they won’t give you those rates, that’s a clue to try elsewhere…
I’m PAYE all the way since they changed the tax laws where you can’t claim travel allowance/mileage. Yes they will always quote the Self Employed rates to try and sucker you in, so ask what their PAYE rates are, which will probably £2.50 to £3 lower. And if they won’t give you those rates, that’s a clue to try elsewhere… 