Hi guys looking for a wee bit of info ,Just signed up with an agency whilst I’m between jobs till I get something a little more perm that suits , the agency want me to sign up with an umbrella company called Esentual , although I’m not keen on this idea as I’ve read the previous posts on here and most say don’t touch umbrella schemes with a barge pole , don’t know if it’s compulsory need to check with agency , any advice on how it works for paying Tax NI contributions if you don’t use this scheme cheers guys ,or do I have to use it thanks in advance for any replies
Wise words I once heard… Behind every scheme is a schemer. Food for thought?
Ask agency for regular PAYE. If they refuse or are unwilling to accommodate your request, then move onto another agency.
Ask first the rates for PAYE and Umbrella.
If the PAYE seems about a pound lower than what you think the going rate is, insist on PAYE at the Umbrella rate or go on Umbrella but for a pound extra if you follow.
Agencies want you on Umbrella for the rate they would normally pay PAYE.
thomasb9295:
Hi guys Just signed up with an agency
Poor you…[emoji30]
Hi
Been on full time agency now for 6 years
I found when I was on a umbrella (nova), they where taking to big cut in my wages.
now swapped to Ltd company charging flat rate vat scheme and I found I am so much better off
don’t think I would go back to PAYE unless the law changes
I have recently signed with Essentual (weekends only). They take 6 % but capped at about 35 quid for a week’s work. The agency pay a pound an hour more but you pay yours and employers NI. They max out your expenses (mileage, food etc) to offset against tax. On a sample pay slip they illustrate that you are about £15 better of than paye on a typical week. My first pay is due next week so look forwards to seeing the figures. The agencies do it to reduce overheads by not requiring staff for payroll.
098Joe:
My first pay is due next week so look forwards to seeing the figures
Strap a mattress to your back to minimise the injuries when you faint and fall backwards after finding how bad your wages are …
098Joe:
They take 6 % but capped at about 35 quid for a week’s work.
That’s a potential max bill of up to £1820 for the year (52 weeks), where as if you did your own bookkeeping it would be £5-£13 per week for an accountant to do you end of year accounts. You’d also still get most of the tax breaks without sailing so close to the edge the taxman will hunt you down demanding re-payment
098Joe:
you pay yours and employers NI.
If you where drawing dividends only, you wouldn’t need to double pay NI.
In fact you wouldn’t pay any NI
098Joe:
you pay yours and employers NI. They max out your expenses (mileage, food etc) to offset against tax. .
One big tax fiddle. You wont be smiling when HMRC comes knocking at your door!
LIBERTY_GUY:
Ask agency for regular PAYE. If they refuse or are unwilling to accommodate your request, then move onto another agency.
…They’ll try and bull you over with “all the other agencies are phasing out PAYE in favour of Umbrella, in which we are uniquely situated offering a comepetive rate and plenty of other buzzwords designed to blind you with science, and bull you over until your eyes glaze, and you just knuckle down and give us the wages we paid you back in commission backhanders.”
Winseer:
LIBERTY_GUY:
Ask agency for regular PAYE. If they refuse or are unwilling to accommodate your request, then move onto another agency.…They’ll try and bull you over with “all the other agencies are phasing out PAYE in favour of Umbrella, in which we are uniquely situated offering a comepetive rate and plenty of other buzzwords designed to blind you with science, and bull you over until your eyes glaze, and you just knuckle down and give us the wages we paid you back in commission backhanders.”
I am currently registered with two agencies on strict PAYE only. Even got off the Mickey Mouse travel and subsistence scheme one had opted me into without my permission. As with all things you vote with your feet, as there is no shortage of agencies out there.
A third agency tried to push me onto an umbrella scheme, but when I read the bumph a clause stated I would be responsible for any damages or losses caused (this was for assembly work). My response to that idea was rather graphic… 
Go paye, you need 13% above paye to make it viable
I remember when Blue Arrow put me on the so-called “benefits scheme” which basically showed on the payslip as “Travel Expenses +£55.00 Deduction -£87.00”
In other words, I seemed to be paying them £32.00 for…? - I never ever did find out.
When I turned up at the office, payslip in hand, asking what that £87 deduction was for… I was told “Oooh you are guaranteed to be better off!”
Well I bloody well wasn’t. Minus thirty two quid net is NEVER going to leave me better off. How can it?
It’s bad enough when so many agencies bull you along all the time. When they lie directly to your face, thinking you to be a blithering idiot who doesn’t know what a minus sign means on a payslip - that really takes the biscuit!
Winseer, I love minus signs 
But they have to be in the Tax & NI column 
Winseer:
I remember when Blue Arrow put me on the so-called “benefits scheme” which basically showed on the payslip as “Travel Expenses +£55.00 Deduction -£87.00”In other words, I seemed to be paying them £32.00 for…? - I never ever did find out.
When I turned up at the office, payslip in hand, asking what that £87 deduction was for… I was told “Oooh you are guaranteed to be better off!”Well I bloody well wasn’t. Minus thirty two quid net is NEVER going to leave me better off. How can it?
It’s bad enough when so many agencies bull you along all the time. When they lie directly to your face, thinking you to be a blithering idiot who doesn’t know what a minus sign means on a payslip - that really takes the biscuit!
The trouble is a lot of drivers ARE blithering idiots who accept any bullpoop that is thrown their way. Its how the agencys get away with scams like umbrella schemes!!