Wages with different agencies

Hi there,
I do work for one agency at the moment. If I do work for another agency and end up getting paid from them both, what happens with the tax you pay?

Does one go through on your tax code and the other as basic rate? If so, how does it work itself out so you pay the correct tax overall?

Thanks

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You can choose to have all your tax allowance with one in which case the second will have everything taxed and you’d have to reclaim the excess paid at the end of the year or you can phone up the tax office and have your personal allowance split between the two, worthwhile doing if you expect to earn more than half the personal allowance at both. You will have weeks where you’ll pay more tax at one place than you would but it’d balance itself out over the year.

If you end up paying too much tax you can claim it back in April, it is fairly straightforward and you wont need an accountant, in many cases the refund will be automatic. gov.uk/claim-tax-refund

Cheers men [emoji106]

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You won’t pay any National Insurance on the first £368 of income paid through the agencies’ payrolls each week, as you get the £184 per week National Insurance tax free allowance at both agencies.

This means you will be £22.08 better off each week by working through two agencies instead of one.

Rather than making a new post, I will hijack this one as my question is similar :smiley:

I work 5 days a week for 1 company, sometimes work directly with another company on Sundays (paying Basic Rate tax), and am now looking at ad-hoc agency work to get some HGV experience.

Am I right in thinking that any weekend work would be taxed at Basic Rate, however many different employers or agencies are involved?

Goff118:
Rather than making a new post, I will hijack this one as my question is similar :smiley:

I work 5 days a week for 1 company, sometimes work directly with another company on Sundays (paying Basic Rate tax), and am now looking at ad-hoc agency work to get some HGV experience.

Am I right in thinking that any weekend work would be taxed at Basic Rate, however many different employers or agencies are involved?

Yes you would be entitled to be treated like that. I can’t think of a better way to organise it. You will just sort out at the end of the year. If you exceed the personal allowance in your main employment, then it will just be a case of whether you exceed the higher tax rate threshold in total.

The closer to a “last minute fill” a vacant shift happens to be - the bigger cut the agency who’ve taken it on as “Sub” will charge, meaning the lower the final rate the mug driver who eventually picks up that shift will get…

“Parity Pay” - it won’t be.

Winseer:
The closer to a “last minute fill” a vacant shift happens to be - the bigger cut the agency who’ve taken it on as “Sub” will charge, meaning the lower the final rate the mug driver who eventually picks up that shift will get…

“Parity Pay” - it won’t be.

If they’ve done 12 weeks work within a qualifying period, even if it’s not a continuous 12 weeks, then the agency has no choice but to pay that as a minimum. And the closer to the last minute fill a vacant shift happens to be the higher the rate they’ll be paying the driver too, over the years I’ve often played the “ignore the texts and see just how high the money goes” game. Many agency drivers will confirm to you they’ve been offered bonuses of £100+ per shift just to turn up to work at places like Tesco RDC if they’ll work the few days approaching Xmas. Last year my agency was offering £150 per shift to do Tesco Goole in the week up to Xmas.

There is no “cut” agencies take. They bill you out at X, they pay you Y, just the same as a haulage company does with their permanent drivers and any business does with their staff. Their client isn’t going to employ you directly so there is no cut being taken.

But thanks for confirming once again you don’t know what the hell you’re on about.

There you go again…

Maybe I should prefix all my posts with “In my experience, which is not total”… :unamused:

I’ve worked agency 7 out of the last 10 years.

None of the jobs I’ve been offered by cold caller agencies via text or phone call - have ever materialized, as the first thing I ask them when they ask me to attend a shift in usually <2 hours is

“What’s the pay in writing/email”
and “Where’s the sign-up forms for your agency, as I’m not gonna get paid at all unless I do THAT - right”?

Then there’s the matter of “Insurance” which will likey be non-existant if any mug of a driver performs a shift with a new agency which once done, you may well not get any pay for at all, or at least not the verbally advised rate…
I got caught out with this just the once, and I then become wary of yet another scam being run by actual bona fide agencies, and won’t fall for it again.

I continue to get a lot of unsolicited texts, usually in caps which I don’t even reply to these days, as the lack of English leads me to believe that it is likely another dodgy outfit I shouldn’t go near.
If that makes me sound nationalist/racist/unwoke then so be it.
I’m sick to death of jumping through other people’s hoops, and forunately I like millions of other drivers around the country, I suspect - are not slaves to the system any more, where they HAVE to take the last minute job, or else “Not get any work at all”…

It has become quite empowering being able to monetize having shifts cancelled at agency, like I suspect millions of us have now done…

“Semi Retirement” I call it. :grimacing:

Conor:

Winseer:
The closer to a “last minute fill” a vacant shift happens to be - the bigger cut the agency who’ve taken it on as “Sub” will charge, meaning the lower the final rate the mug driver who eventually picks up that shift will get…

“Parity Pay” - it won’t be.

If they’ve done 12 weeks work within a qualifying period, even if it’s not a continuous 12 weeks, then the agency has no choice but to pay that as a minimum. And the closer to the last minute fill a vacant shift happens to be the higher the rate they’ll be paying the driver too, over the years I’ve often played the “ignore the texts and see just how high the money goes” game. Many agency drivers will confirm to you they’ve been offered bonuses of £100+ per shift just to turn up to work at places like Tesco RDC if they’ll work the few days approaching Xmas. Last year my agency was offering £150 per shift to do Tesco Goole in the week up to Xmas.

There is no “cut” agencies take. They bill you out at X, they pay you Y, just the same as a haulage company does with their permanent drivers and any business does with their staff. Their client isn’t going to employ you directly so there is no cut being taken.

But thanks for confirming once again you don’t know what the hell you’re on about.

There is still a myth as well that agencies make a huge amount from the difference between X and Y. Believe it or not the margin can be less than £1, if you were signed up as an approved supplier to DHL for instance it was something like 84p. This is why agencies hated IR35 more than drivers, when the agencies didn’t have to pay NI & Hol Pay they could make a much bigger margin than the PAYE one.