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PAYE or Umbrella??... 3 different jobs

Discussion in 'Supply teaching' started by sara1112, Jul 26, 2019.

  1. sara1112

    sara1112 New commenter

    So I've been on maternity leave for the last year and to obtain some flexibility/life balance with working and being with my baby boy, I will be doing 3 different things from September.

    I will be returning to my school in September but just for one day a week.

    I've just started private tutoring through an independent company but working as self employed. Tax return to do in January.

    I've also signed up to a supply agency to do occasional supply work from September. Possibly just a couple of days a month.

    The supply agency recommended using an umbrella company as I am doing a few different things, but I'm not sure as the UC almost sounds too good to be true which makes me cautious.

    Any advice on this please? Anyone else been in a similar situation?

    I've been full time teaching in the same school for the past 9 years so this is all new to me.

    Thank you. Any advice will be much appretiated.
  2. pepper5

    pepper5 Star commenter

    Although your situation sounds complicated it isn't.

    Your school will pay you PAYE, you do your tax return after the end of the tax year which will be April 5 2020, and as for the any money you get from supply, always use PAYE. When you go to file your tax return and you need help, look in your local area for bookkeepers or other businesses which might be able to assist. For something simple, you might pay around £100 which sounds like a lot but they will know what you can claim in expenses and may be able to get you to pay less or a rebate.

    If you use an umbrella company, you will have to pay an administrative fee plus extra taxes which will always make you worse off. Tell the agency you would like to be paid PAYE. Be cautious when dealing with agencies as they don't always have your best interest at heart, but you probably know that anyway.

    You sound very organised, so I don't have to tell you this, but keep detailed records of everything and create files where all your receipts, contracts, and payments are kept for each activity you do; keep very accurate records like start dates, payments received, anything you might need to evidence your economic activity in case you ever have to claim Universal Credit or other benefits ( not saying you will, but you need the records for other things as well).

    You have an incredible amont going on at the moment, but at some point, think about learning some new skills in case you choose not to ever return to education full time. There are a lot of different things you can do and a lot of opportunity in different fields, but you may have to pick up some new skills such as computer programming , bookkeeping, or other skills.

    Well done for your new job of being a mum which is the most important job you will ever do.

    You are definitely a hard worker so you will always have opportunities to earn money.
  3. JohnJCazorla

    JohnJCazorla Star commenter

    Umbrella companies are too good to be true but only for the Supply Agencies, it means they can cop out of doing the expensive, time-consuming effort of organising your pay by getting you to pay for the UC to do it.

    So agents devote a lot of their high-level sales skills to get you to sign up with a UC.
    agathamorse, sara1112 and pepper5 like this.
  4. gruoch

    gruoch Occasional commenter

    Mine doesn't offer the option. I'm paid by an umbrella company, but PAYE. I should lose 20% as tax (too old for NI) but they deduct a whole lot more than that. AVOID!
    catbefriender, sara1112 and pepper5 like this.
  5. lynneseptember

    lynneseptember Senior commenter

    Yes, avoid umbrella companies - they are too good to be true and you will be worse off financially.
    sara1112 and pepper5 like this.
  6. catbefriender

    catbefriender Lead commenter

    Agree, to AVOID UCs and rather than work here there and everywhere, why not just work at your school and do 2 days and tell HR that you are 'open' to do cover/extra days, if needed. You could say be 'available' on Mondays and if the school doesn't need you, do something fun or ring the agency. Re tutoring, do it yourself, register with online tutoring agencies, put an ad in Gumtree and make LOADS more, save the parents LOADS too, without the hassle of agencies.

    Agencies are such a necessary evil for many, but do your best to keep as far away as you can from them, for has long as you can as they will probably come a time when you won't have that luxury option.:(

    And congrats on your beautiful bundle!:)
    sara1112 and JohnJCazorla like this.
  7. sara1112

    sara1112 New commenter

  8. jubilee

    jubilee Star commenter

    Agencies want you to use umbrella company as it means you pay employer and employer NI. Say no!
    Also, let your school know that you are available for supply days and get your proper pay rate. Contact other schools direct too, flagging up that you are in a p/t contract post.
  9. sara1112

    sara1112 New commenter

    Thank you for your advice everyone. It possibly does sound a bit complicated but my aim is to earn some money, have much more flexibility/ choice, and most of all, spending precious time with my son ☺

    With regards to tutoring, I am lucky as I've found a lovely local company run by ex teachers who have created their own business and have a team of 16 teachers working for them in their own classroom premises. I don't like tutoring in children's homes so this was ideal. They provide all the stationery and some resources which is a bonus too. I'm only doing 4 hours a week with them presently.

    I didn't know that you could contact schools directly about supply without going through an agency??? Like I said, I'm quite new to all this. If I only did 2 days a month supply, I would be happy with that. It's just for that bit of extra income and I'm quite interested to see what other schools are like.

    I haven't approached my school on the idea of extra cover yet as they are not the most accomodating. They now use LSAs for cover mostly, probably because they're a cheaper option.
    Going one day a week was quite a tough decision to make but I did so because I had a very rough time having my little boy and took a while to recover. I didn't want to commit myself to the pressure of doing more days. It's a very pressurised school, they will squeeze as much time and energy as they possibly can out of the staff.

    As far as the UC is concerned, I won't go down that route now. I'm pleased I asked for advice on here about it otherwise I would never have known.

    So I suppose the question now is, using a supply agency or contacting schools ditectly?
    JohnJCazorla and pepper5 like this.
  10. JohnJCazorla

    JohnJCazorla Star commenter

    I’ve tried contacting schools directly and always come to the conclusion that HR can’t be bothered and/or is so useless that Agencies are the only viable option!
    Does no harm to try, though time-consuming.
    sara1112 and Jolly_Roger15 like this.
  11. Jolly_Roger15

    Jolly_Roger15 Star commenter

    @JohnJCazorla: Twice I contacted schools directly; once by email, and once by letter. As you said, paper mail shots were time-consuming to send, not to mention expensive! To the emails, which I sent to a larger number of schools, I received a couple of 'Thanks but no thinks' responses; to the letters, nothing at all!
    JohnJCazorla likes this.

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