Started Agency Work - Having to pay them (Umbrella Co) To get paid…
Having been employed since passing my test until the company I worked for lost the contract. I am now starting to do agency and I am told that I should work through an umbrella company as it is to my benefit. But having spoken to them I find out that I am going to be charged up to £1300 a year just to be paid on PAYE, surely it is illegal to have to pay your employers admin costs to get paid? At this stage I don’t see what the benefit is of being employed through an umbrella company.
Are you sure you’ve picked them up correctly? Over a grand a month just to be paid? Is this on top of your NI? Doesn’t sound right.
When I was agency I was in an umbrella scheme and they charges about £20 a week to do “the books” which is about a grand a year
13000 pounds to many zeros there i think ,if you read through this forum most posts tell you to steer clear of such schemes,pesonally i wouldnt want to work for them and would go and find somewere else but hey ho its your choice ,10yrs ago when i was self employed i kept a record of ins and outs and my accountant sorted everything else out at the end of the year put my books into hmrc and charged me 250 quid will have gone up now but not that much , your choice .im expecting loads of posts telling you the same
Surely if you are PAYE the employer should pick up the payroll cost?
This is not for Ltd Co Status…
I have my own accountant for other income, who states that my income from Hgv driving does not really Warrenty being Ltd and can’t see why I can’t be self-employed as a sole trader… But agency states that it is ether PAYE or ltd status only. Won’t do sole trade even if I put the correct insurances in place.
war1974:
not many take sole traders, why not just go paye>?
As per my original posting I will be charged up to £1,300 as PAYE with their umbrella company as a handling fee for being paid for the work that I do. Surely on PAYE you don’t pay your employers payroll accounts costs !!!
Its a scam they use so they can avoid paying employers NI which is roughly equivalent to 11% of what they pay you.
The way it works is that ultimately the umbrella company is your employer, not the agency. They invoice the agency for the hours you’ve done, hold back 12.6% of it for holiday pay, subtract not only the 10% NI you pay as an employee on everything you earn above £132 a week but also the 11% what an employer has to pay, their £25 fee and your income tax at 20% above £200 a week. They reduce the stoppages by getting you to claim expenses such as travel to work.
No its not right, yes it should be banned and thankfully HMRC seems to have finally woken up to how much money they’re losing so eventually it should be.
Thruxton:
Started Agency Work - Having to pay them (Umbrella Co) To get paid…
Having been employed since passing my test until the company I worked for lost the contract. I am now starting to do agency and I am told that I should work through an umbrella company as it is to my benefit. But having spoken to them I find out that I am going to be charged up to £1300 a year just to be paid on PAYE, surely it is illegal to have to pay your employers admin costs to get paid? At this stage I don’t see what the benefit is of being employed through an umbrella company.
Can anyone offer any advice?
Let me get this right, you are saying that Agencies are now charging you to work for them.
Sounds like a good system to me where do I sign up?
Thruxton:
No that’s not quite what I said… The agency wants me to be paid through an umbrella company and they charge me for administrating their payroll…
Driver Hire attempted to push me onto their own umbrella scheme, then when I refused tried to claim they’d have to pay me a lesser rate of pay. When I suggested I’d put this concept direct to the client to see what their view was, they very quickly rescinded and put me on regular PAYE.
Many umbrella schemes are basically illegal, as HMRC have already pointed out.
Thruxton:
No that’s not quite what I said… The agency wants me to be paid through an umbrella company and they charge me for administrating their payroll…
Ok mate I wasn’t really taking the wotsit out of you.
I would not trust agencies as far as I can spit, and if somebody like Conor who normally speaks up for the ■■■■ s says they are scam artists, that says it all.
I would not touch them with a barge pole if I was you.
Find a reputable agency (contradiction in terms btw ) or go back as an employed driver, either way get what they owe you and kick em into touch.
I’m taking home just as much employed as I was doing same Job through agency umbrella and not paying 2 lots of NI payments and the £20 or so the thieves charge
Thruxton:
Started Agency Work - Having to pay them (Umbrella Co) To get paid…
Having been employed since passing my test until the company I worked for lost the contract. I am now starting to do agency and I am told that I should work through an umbrella company as it is to my benefit. But having spoken to them I find out that I am going to be charged up to £1300 a year just to be paid on PAYE, surely it is illegal to have to pay your employers admin costs to get paid? At this stage I don’t see what the benefit is of being employed through an umbrella company.
Can anyone offer any advice?
If you actually WANT to pay £35 a week for work, then make sure you get plenty of hours of it, and at a decent hourly rate.
Even I would pay £35 a week bloody commission to pick up 40 hours @ £18ph…
The danger with Umbrella is that they will bend over backwards to give you that FIRST shift of the week - that pays their fee - and then you might get bugger all else.
(a flat 8 hour shift doesn’t leave you much when £35 is still taken out of it regardless…)
The subcontractor laws changed not very long ago so that to be a a subcontractor you have to be ltd. If your going to do this long term then go ltd your self and go direct to 2-4 companies. Other wise tell the agency to put you on paye
alix776:
The subcontractor laws changed not very long ago so that to be a a subcontractor you have to be ltd.
No it didn’t. Whoever told you that was lying. Agencies using drivers and other companies trying to evade employers NI want them to be Ltd to try and cover their arses.
war1974:
not many take sole traders, why not just go paye>?
As per my original posting I will be charged up to £1,300 as PAYE with their umbrella company as a handling fee for being paid for the work that I do. Surely on PAYE you don’t pay your employers payroll accounts costs !!!
no paye will incure no charges, umbrella is pretty much ltd company hence why they charge the ‘fee’ as they if any good will do the invoice and the likes for you.
do not think umbrella is a paye scheme it isn’t, paye is paye, umbrella and ltd are pretty much the same thing now. any decent agency will offer you either or.
) or go back as an employed driver, either way get what they owe you and kick em into touch.