PAYE is self explanatory, you get paid by the agency for the work you have done but your tax is deducted as is your national insurance contribution, normally the hourly rate from the agency is less as they have the hassle of administrating this, you are also entitled to holiday pay as a PAYE worker hence the lower rate as they pay you your holiday pay but in effect they are just paying the money they have held back.
Umbrella this as far as I understand is basically the agency pass your money onto another company which then pay you your wages but they keep a percentage of your wages as an admin charge to cover their costs, this can also be flat rate, but I think from what I have read on here is that some umbrella companies don’t always pay the correct amount of tax so you could end up with an unexpected bill, Umbrella company schemes are also under investigation by the inland revenue as of December last year.
Self employed is exactly what it says on the tin, you should get paid a higher hourly rate but you are responsible for your own tax returns, Agency’s don’t tend to like self employed and I haven’t really got to the bottom of why as you invoice them for work done, they pay you and on their records as far as the tax man is concerned there is a paper trail to you … but I am sure someone will be along soon to explain this.
Ltd company, I am a limited company, I work for three hauliers direct I don’t bother with agency’s anymore as I got fed up with being messed about with money, My company invoices the companies on a weekly basis for work I have done. I get paid a higher rate than agency’s offered as the company no longer have to cover the agency’s fees so are happy to give me a bit more. I am in a bit of a different situation as I have a pension, but normally as a Ltd company your money gets paid into the company account, you then draw a salary equivalent to your yearly personal tax allowance over twelve monthly payments, £10000 over 12 months is a salary of £833.33 a month, expenses are taken as well, things like meal allowances, mileage, any equipment(PPE), insurances, phone etc etc etc, then to top up wages you take a dividend which is taxable but at a lower rate although I haven’t taken a dividend yet as I have my pension. An accountant will be needed really if you go limited.
hope all this helps, like I say Agencies can work for you but personal experience has put me off them, I just went to three local haulage companies as a newly qualified class 1 and class 2 driver, offering to be a relief/holiday cover driver and so far I have worked 7 days of the last two weeks, The companies always try me now before they go to an agency as they would rather have a driver they know, who knows their company ways and systems.