Can’t see me doing agency fir very long , but do you get holidays , how many , are you paid etc ta
Yes, as an agency driver you are employed and are entitled to holiday pay. You’ll build up your holiday time as you work, so for the sake of example and just plucking random numbers out the air, you might earn 1 hour of holiday pay for every 8 hours you work. Check with your agency what their rates are
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But in reality they will bundle it up within your hourly rate so you will not see any extra, and the umbrella payroll company that fakes your paye status will tell you it’s perfectly legal and the way everyone does it.
Had one agency call me recently and I spoke to their payroll company to see how they work… as well as holiday pay taken out of the advertised rate, they also expected you to pay their employers ni contributions out of your pay!!
Both of…
The ones I work with pay the going rate.
No spurious deductions and no little added caveats. I’ll be straight with you lot here, there is (as I understand it) more than one way to calculate holiday pay and my assumption is I’m probably on the rate that benefits them and not me. But, I get paid the right amount of days I should and it’s near on what I earn per day so I’ll take it.
I went jet-skiing last year in Thailand and got holiday money for every day I was out there.
idrive:
But in reality they will bundle it up within your hourly rate so you will not see any extra,
Not if you’re PAYE.
and the umbrella payroll company that fakes your paye status will tell you it’s perfectly legal and the way everyone does it.
If you’re umbrella or self employed then yes that is how it works.
Had one agency call me recently and I spoke to their payroll company to see how they work… as well as holiday pay taken out of the advertised rate, they also expected you to pay their employers ni contributions out of your pay!!
If you’re using an umbrella company then that’s what happens as the umbrella company has to pay the employers NI.
dozy:
Can’t see me doing agency fir very long , but do you get holidays , how many , are you paid etc ta
If you’re on PAYE with them then you get it, if you’re umbrella or self employed its in the hourly pay you get.
Assuming PAYE it works one of two ways:
- They put an amount equal to 12.07% of your hourly rate into a holiday pot and pay it out when you want it or,
- They calculate the daily rate based on the average of the previous 12 weeks pay. Most pay the statutory 28 days but where I’m at we’re on 33 days on the contract I’m on.
Most agencies on PAYE use option 2 as it saves them a few quid if you take holidays after a quiet period. The 12 weeks is being changed to 52 week average next year so those who do seasonal work, which agency typically is, don’t lose out as they currently do under the 12 week rule.
Conor:
idrive:
But in reality they will bundle it up within your hourly rate so you will not see any extra,Not if you’re PAYE.
and the umbrella payroll company that fakes your paye status will tell you it’s perfectly legal and the way everyone does it.
If you’re umbrella or self employed then yes that is how it works.
Had one agency call me recently and I spoke to their payroll company to see how they work… as well as holiday pay taken out of the advertised rate, they also expected you to pay their employers ni contributions out of your pay!!
If you’re using an umbrella company then that’s what happens as the umbrella company has to pay the employers NI.
Nope, these are all schemes by agencies claiming you are PAYE when you are clearly not, rather embroiled in umbrella scams, which you seem fine with so good luck to you
idrive:
Nope, these are all schemes by agencies claiming you are PAYE when you are clearly not, rather embroiled in umbrella scams, which you seem fine with so good luck to you
If…
The tax man sends me a P60 every year setting out how much tax I’ve paid him for the year to date, then which part of the brolly am I under?
yourhavingalarf:
idrive:
Nope, these are all schemes by agencies claiming you are PAYE when you are clearly not, rather embroiled in umbrella scams, which you seem fine with so good luck to youIf…
The tax man sends me a P60 every year setting out how much tax I’ve paid him for the year to date, then which part of the brolly am I under?
Never said you were mate, didn’t quote you.
As you say you have no deductions or caveats, you just pay your tax and NI as a PAYE person does so happy days.
I think if you were paying your employers contributions for them then HMRC may be more interested.
As for the holidays, if you get holiday pay on top of your agreed hourly rate, then well done you are paid properly.
Most agencies bundle up holiday pay into your wages with a deduction shown on your slip for holiday pay. This means you are actually being paid less than the rate you agreed to and are paying for your own holiday pay
yourhavingalarf:
idrive:
Nope, these are all schemes by agencies claiming you are PAYE when you are clearly not, rather embroiled in umbrella scams, which you seem fine with so good luck to youIf…
The tax man sends me a P60 every year setting out how much tax I’ve paid him for the year to date, then which part of the brolly am I under?
If the taxman sends you a P60, then surely you must be employed by HMRC. I didn’t know they employed HGV drivers…
If your agency pays into a “pot” - then the add is normally 12.07% of gross pay that goes into it.
This means that you end up getting one paid day off for every 8 shifts you do, and at whatever average length shift that was, along with whatever the average hourly rate was you worked at.
This system is better for people like moi who are going out of their way to do 12-15 hour shifts at weekends in particular. 
I have found that my average hourly rate is around the £15.75 mark for example, reflecting that I do a lot of weekends.
It has been three weeks since I’ve taken a day off paid, and in that time I’ve already built up another two days off, which will always include a long weekend shift in there to keep the average up. 
When I was at Manpower, they just aggregated up your holiday pay every 13th week, and paid it out as a fully-taxed lump sum addition to my pay, which was about a week’s pay for every 13 weeks worked - once again, averaged on whatever a “weeks pay” happened to be for me, which was around £560 takehome for 3-4 shifts.
I’ve no complaints about that system, neither.
The only system I’ve heard of that I consider to be “Dodgy” - is the “Averaged over 13 weeks” thing where if you have a few quiet weeks, and have NOT taken your holidays in those particular weeks - one’s average actually decays, as a result of a couple of blank weeks being used in the average calculation. Thus, the agency will actively encourage people to take holidays after a string of “short weeks” - thus paying out less holiday money as a result. 
If you try and take the holiday after 13 weeks of 5-6-5-6 flat-out hours - then guess what? - You get lied to, saying "Next week will be as busy as ever, so don’t take any holidays - only for it to be like a single shift by Thursday, by which point it is too late to put in for those what-would-have-been top dollar averaged holidays. 
idrive:
But in reality they will bundle it up within your hourly rate so you will not see any extra, and the umbrella payroll company that fakes your paye status will tell you it’s perfectly legal and the way everyone does it.Had one agency call me recently and I spoke to their payroll company to see how they work… as well as holiday pay taken out of the advertised rate, they also expected you to pay their employers ni contributions out of your pay!!
This as you describe, is what I call “Pseudo PAYE” where the umbrella company is only pretending to employ you, and in fact you are Self-Employed, and liable to get a hefty demand in back taxes from HMRC in due course.
NO actual holiday pay, Definitely no sick pay, and the £27per week umbrella fee is “hidden” behind any “meal expenses” or “night out money” - which as self-employed - you’re not actually entitled to, hence why HMRC asks for that “invisible deduction” to be paid back, roughly costing you £27per week. Not good if you’ve been doing it all year around huh?
idrive:
But in reality they will bundle it up within your hourly rate so you will not see any extra, and the umbrella payroll company that fakes your paye status will tell you it’s perfectly legal and the way everyone does it.
Kinda-sorta…what they (agencies) do is advertise a rate (say £10 p/h) and when you agree and accept a shift they’ll email you the details for the assignment where you find out the pay is actually £9.30 or so because the rate they advertised included holiday pay, so you get £9.30 p/h on friday and then .70 “set aside as holiday pay” for every hour worked - nothing illegal…in theory. In practice good luck getting an agency to pay you all of your accumulated holiday because God only knows how they calculate it and the rules for claiming it change depending on who you talk to in their office or they’ll just say “It’s not us, it’s the payment company you need to talk/complain to”
Bloody this sounds like hard work , pushes me more towards company employee
Yes your entitled to holidays.
If you ask your get told it’s worked out get it pro rata seems to cover everything.
What ever it means.
But basic holiday is 20 days a year.
365 days a year.
Means roughly every 18 days you work you get a days holiday
edd1974:
But basic holiday is 20 days a year.
No it isn’t. It’s 28 days, has been since Teflon Tony brought it in over a decade ago.
PAYE workers are entitled to paid holidays, that should NOT be part of any advertized hourly rate.
Self-Employed rates are typically £1-£2ph higher, to reflect that you DON’T get holiday pay when Self-Employed.
You also have to pay your agency’s stamp alongside your own.
I always insist on proper PAYE, but have been tricked a couple of times by “Pseudo PAYE” nonetheless…
It’ll probably disqualify me for the higher rate state pension at retirement. 
In my case (I’m PAYE) approximately 7-8 weeks work built up enough to pay me a weeks holiday pay, which was paid at a higher rate p/hr than I get paid p/hr for working !!
But as it seems Dopy is (incorrectly) viewing agency work in the same way as as he would as being a full time employee with the guaranteed benefits he’s had previously, instead he should be looking at it as a short term fix between “jobs”, so the subject of holiday pay won’t really matter as I suspect that he’ll flounce off after being given crappy start times that limpets get and go look for full time work. But while doing agency he should in reality look at working as many hours as possible then taking a break from work at a time that suits him
peirre:
In my case (I’m PAYE) approximately 7-8 weeks work built up enough to pay me a weeks holiday pay, which was paid at a higher rate p/hr than I get paid p/hr for working !!
That’s probably due to the holiday pay being “invisibly” deducted from what you earn when actually working. No such deduction being made while you are “on holiday”.
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It is worth pointing out, that these days - Full Time Employers tend to side-step their “Sick Pay” obligations ('cos there doesn’t seem to BE any these days!) whilst Agencies now pay 12.07% of one’s worked hours into one’s holiday entitlement.
This NARROWS the difference between Full Time Working and Agency Working then.
If you then find that on that agency, you get work, and get ASKED to work EVERY WEEK WITHOUT FAIL - then all this tosh about being laid up for weeks at a time - clearly only applies to economic downturns, the last of which (for me, at least) was 2011-12, where my income collapsed, because I’d only just got onto agency in 2011, and was way down the pecking order for getting a full week’s worth of shifts given to them by the previous friday like I get now. I was getting odd shifts (1 or 2 per week) at places 50+ miles away from where I live back in 2011. These days, I’m so packed out for work, I am struggling to find days to “take my holiday pay” IN. 
My next problem to solve, is “getting myself back down to 20% tax” - because if I carry on at this rate, I’m easily into the higher rate, and I’m PAYING it already, thanks to W1 taxation - one of the few disadvantages of being paid “weekly” on agency. I just about swung it back in March this year (for last year’s taxable earnings) where I was flat out at Royal Mail from November to the beginning of March, paid a HUGE amount of higher rate tax, and then cut it dead so I got a £1500 rebate by the end of March - paid before the start of the new tax year to boot. 
I may well take the whole of March off next year as well. It’s like taking three weeks “free holiday” if you drop your earnings back down below the higher threshold in this way…