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Supply pay through umbrella company

Discussion in 'Supply teaching' started by SpideyClaire, Feb 23, 2016.

  1. SpideyClaire

    SpideyClaire New commenter

    Apologies if this has been asked before. I joined a supply agency today and when I was contacted by the payroll agency they told me they chage a £10 'Umbrella Margin' for each day. Unless I've misunderstood this means I am paying £10 a day to get paid which seems ridiculous. Is this how it works these days? It's been over 12 years since I last did supply and back then I got paid directly by the agency.
  2. Rozario123

    Rozario123 New commenter

    Yes I had the same problem as you. Don't really understand this "umbrella co." Seems like a tax dodge. I had to pay £13 margin. Was so grateful to get some work that I just agreed, but have now decided to work for another agency that will pay me direct.
    SpideyClaire likes this.
  3. nearmiss

    nearmiss Lead commenter

    I would suggest to anyone who is working through a supply agency and being paid through an umbrella company to write to the Head office of the agency. As of April 2016, I understand that the Chancellor intends to make these payroll companies unlawful. What arrangements are agencies making to ensure that their payroll procedures comply with the law?
    SpideyClaire likes this.
  4. Lara mfl 05

    Lara mfl 05 Star commenter

    Have never worked for an agenncy, but am I correct in understanding that you have to pay £10 a day, which works out at £1900 a year? o_OYou'd need to have guaranteed work every day to recoup that sort of money!
  5. pepper5

    pepper5 Star commenter


    Find an agency that pays you PAYE (pay as you earn).
    Dragonlady30 likes this.
  6. rainbowsparkle

    rainbowsparkle New commenter

    My agency pays PAYE but they still take £2 per payment for "admin costs". Is this normal/allowed?
  7. PizzoCalabro

    PizzoCalabro Established commenter

    There is no 'normal' or 'scale' in supply - your pay is what you negotiate - they will take the proverbial if you accept it.
  8. nearmiss

    nearmiss Lead commenter

    No, it is in breach of legislation governing the conduct of employment and recruitment agencies. They cannot charge for statutory services.
    Please contact me via PM
  9. rainbowsparkle

    rainbowsparkle New commenter

  10. SpideyClaire

    SpideyClaire New commenter

    Which agency is that if you don't mind me asking? The one I've signed up for is Simply Education which I was linked to via Reed Education.
  11. Deirds

    Deirds Senior commenter

    Reed definitely have PAYE as an option.
  12. tcoll123

    tcoll123 New commenter

    £12?! Blimey. RACS charges 3. I specifically asked one agency to pay me through them because the one they automatically signed me up for was 12 or something.

    It really is a joke, but I guess the charge is for the all the admin of the tax refund stuff. If I'd have known better I would have asked to be paid PAYE.
  13. tcoll123

    tcoll123 New commenter

    * Not that the tax refund stuff is of much use, or even necessarily legal.
  14. SpideyClaire

    SpideyClaire New commenter

    I went through the Reed website but it turned into Simply Education by the time I was through to registering.
  15. SpideyClaire

    SpideyClaire New commenter

    They say I can claim travel and food expenses and offset against tax, which blatantly contradicts what HMRC say on their website but they tell me they do it as a loophole. I don't need that anyway as I have income from writing which I have to do a SA tax return for anyway so if I did want to do that I can do it without their help.

    Apparently I can ask to be paid PAYE but then the agency will pay me a lower daily rate (according to the UC, which I haven't checked with the agency to confirm).
    The agency told me that if they had to pay the NI contribution it would be so high as to not make the business worthwhile.

    In the old days before I had kids and went permanent I used to supply teach and got paid by the agency direct without any of this fuss.
  16. Deirds

    Deirds Senior commenter

    I would still want to be paid as PAYE...
  17. Dragonlady30

    Dragonlady30 Star commenter

    I well remember getting a 'phone call ref umbrella company and being told it was now the law. Rubbish, I said. 'Please forward me chapter and verse as to when this became law.'
    Never had a reply and was paid through PAYE. Some supply companies are not to be trusted!! ;)

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