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Umbrella company for supply?

Discussion in 'Supply teaching' started by artemis81, May 23, 2018.

  1. artemis81

    artemis81 New commenter

    Hi there
    2nd post this eve, and I'm trying to get to grips with my new role as ST
    What exactly is the 'umbrella company'
    that i hear mentioned?
    apologies if I sound naive
    i believe i am paid on a code 1210L
    Should i be on PAYE?
    Is that arranged thru tax office or SA?
    Thanks for any info regarding this issue
     
    pepper5 likes this.
  2. guinnesspuss

    guinnesspuss Star commenter

    Try your damdest not to be paid through an umbrella company. They are just another skim off your wages.
     
    captain scarlet likes this.
  3. pepper5

    pepper5 Star commenter

    Do not work for agencies that do not offer you the choice of being paid by PAYE. That is pay as you earn. The agency will organise your payment - not the tax office. If younare paid PAYE that means the agency will pick up the tab for employers national insurance tax; if you are paid through an umbrella company, YOU pick up the tab for the employers national insurance tax. You may also have to pay an administration fee to the UC so you are usually worse off being paid in that way.

    Simply do not work for agencies that do not offer you a choice of how to be paid and always gomfor PAYE.
     
    artemis81 and JohnJCazorla like this.
  4. artemis81

    artemis81 New commenter

    thank you for clarifying this
     
  5. captain scarlet

    captain scarlet Established commenter

    Steer clear of the umbrellas if you can.
    You will find that not only you pay your share of national insurance, but you will be stuck with the employers share to pay as well. Also, you will find that you pay your bit of the pension, and yes, you also get to pay the employers bit as well
    If you do have to go down that route, DO NOT go for one which charges admin by %, Go for one which has fix rate admin.
    Try to stick out for PAYE, it is your best bet
     

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