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Supply teaching - what’s left after tax ?

Discussion in 'Supply teaching' started by ayahsmum, Dec 14, 2017.

  1. ayahsmum

    ayahsmum New commenter

    Hi , am totally new to supply teaching after being in my previous job for six years and then leaving for maternity and not returning.

    Today I met with an agency who told me they would pay me around £100-£110 a day depending on the school.

    I forgot to ask them about how tax works - is this the amount I get after tax ?? If not , what would I get after tax and how would I work this out ? Sorry if this is a very basic/ obvious question!
  2. Melj16

    Melj16 New commenter

    It's the gross about, meaning before any deductions.

    How much tax you pay really depends on how many days you will be working.

    If you work for example 3 days per week at £100 per day.....you wouldn't pay tax as you'd be using your tax free allowance.

    If you worked 4 days per week, you'd pay a little bit tax, but not much.

    You'll pay a couple of pounds national insurance per week.
    pepper5 likes this.
  3. captain scarlet

    captain scarlet Established commenter

    No that will be the amount that they are willing to part with for your services.
    So say you do 5 days at 110 giving you 550
    You will probably pay NI on 400 of that @ ~8%, Then you will probably also have to pay a further ~8% as employers NI.
    Then there is the tax deducted.
    You might also find that you will be paying out to be paid, a fee to the company who pays you.
    You might also get to pay apprentice levy, and if you get auto enrolled to pension, you will pay your bit, OH yes, you will also get to pay the employers bit too.
    If you are not being paid vai PAYE, Get the agency to pay you by PAYE. Otherwise list above is the probable outlay, being paid by Umbrella companies.

    I hve told my agencies, but I don't think they believe me. I'm off dog walking in the new year.

    It is less hassle, I will not be travelling miles to get somewhere by 8 AM.

    You might have noticed that I am a litle agrieved at my outlay being paid via Umbrella..

    Good luck on your placements.
  4. BoldAsBrass

    BoldAsBrass Occasional commenter

    So at a rate of £130 a day - I was taking home just a little over £105 a day, after tax and NI (using the PAYE option NOT umbrella company). Two days worked out at £197 take home etc...more days you work, you pay a little more in stoppages ... Hope this helps :)
    ex-agency-manager and pepper5 like this.
  5. historygrump

    historygrump Star commenter Forum guide

    I would contact the HMRC to arrange for your £11,500 tax allowance is set aside to the various agencies, then you pay virtually no or little tax, I have done this and HMRC may alter things occasionally, but the tax I pay on my earnings is reduced.
  6. TheCuddlyCoyote

    TheCuddlyCoyote New commenter

    Captain Scarlet is correct about all the hidden costs. There isn't really any benefit to you of going through an umbrella company anymore, but there is potentially a big benefit to the agency if you go long term ( you go back each week every week to the same school). After 12 weeks they will have to start paying you comparably to a permanent member of staff. (an EU law called AWR)

    Ayahsmum - it is worth you knowing this in case you start working in one school regularly. If you are M5 in your last job, and you start doing a day a week every week same school, you will be entitled to a pay increase after 12 weeks there.

    When you start though, a half decent agency should offer you a PAYE rate with them, which will be lower by 15%, and then a more attractive sounding higher rate to go through an umbrella company, higher by 15%. That 15% will be taken away from you and keep the umbrella company in business.
    Their trick is, if you go long term past 12 weeks, you might get a payrise but you may also not get quoted the two differing rates again. The agency direct rate should always be that 15% lower, but after 12 weeks, that agency direct PAYE rate should be the same as what you would be getting the school, and so the umbrella rate should alwats be another 15% higher. Not easy to explain.
  7. blazer

    blazer Star commenter

    If I do 5 days that is £700 gross. I take home about £480 of that. However I have to pay 20% tax on the whole amount as my tax allowance is against my pension. Then there is NI. They also stop around £75 of that as holiday pay which I claim back (pess stoppages) when I am not working.
    JL48 likes this.
  8. Landofla

    Landofla Established commenter

    100-110 a day works out at less than M1 for areas with no Ldn weighting.

    You will be taxed on that and have to pay NI contributions also.
  9. TheCuddlyCoyote

    TheCuddlyCoyote New commenter

    I think the issue for day to day cover teachers is easier in that you can move to another agency more easily to get a better comparable rate of pay.
    The longer term teachers have a bigger issue as they are bound and committed to a set of classes, and cannot change when they realise after they have started in their new role, new school, new classes etc etc.. that they are losing out on pay - mainly if you are being pushed to use an umbrella company, but teachers are also exploited post 12 weeks (Agency Worker Regulations).
  10. Landofla

    Landofla Established commenter

    @TheCuddlyCoyote I would disagree wth you on that. When I did long term supply, I was paid weekly therefore if I was unhappy, I gave one week’s notice. There is always negotiating wiggle room with agencies if the school want you. I never had to follow through with my threats to leave btw, my pay was always upped.
    TheCuddlyCoyote and JohnJCazorla like this.
  11. JohnJCazorla

    JohnJCazorla Star commenter

    Agree with @Landofla, there is a lot of opportunity to boost wages when you are employed long/medium-term. Even if it's just because the school and agency would rather keep the status quo than find a replacement. The only difference with me is that I won't go longer than a fortnight without getting top-rate. There is a downside, at least once in 2017, I've been bounced out due to a cheaper one rocking up but as I'm not financially imperilled I can cope with that.
    Landofla likes this.
  12. JL48

    JL48 Star commenter

    I'd second this. If you are a qualified teacher, even as an NQT, you shouldn't be accepting any less than £120 per day.
  13. mauromaglione

    mauromaglione New commenter

    I paid VAT on my wage. Is it normal? I worked two days, 220 pounds ad teacher and the company charged almost 45 for VAT.
  14. mauromaglione

    mauromaglione New commenter

    It was with an agency.
  15. Jolly_Roger12

    Jolly_Roger12 Occasional commenter

    VAT on your wages! How on Earth did the UC justify this? Did it see you as a service provider?
    Lara mfl 05 and frangipani123 like this.
  16. frangipani123

    frangipani123 Lead commenter

    VAT deducted from pay, I've never come across anything like that, unbelievable. I suggest you contact either your union or the Citizen's Advice Bureau to clarify whether this is legal or not.
    Lara mfl 05 likes this.
  17. JL48

    JL48 Star commenter

    border_walker and Lara mfl 05 like this.
  18. border_walker

    border_walker Lead commenter

    Why not check with HMRC.
    Lara mfl 05 likes this.
  19. Lucilla90

    Lucilla90 Occasional commenter

    Definitely, give HMRC a call. Tell them what you are doing and get your tax free allowance applied to the main agency which gives you work.

    You do still pay tax, but it will be rebated at the end of the tax year if you don’t hit the allowance.

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