Umbrella company employment vs agency PAYE
What are the main differences in taxation, employment rights, continuous employment, ongoing payments & more?
How does it compare?
It can be hard to know whether to choose Umbrella or Agency PAYE. We’re here to help you navigate both options & decide what’s best for you.
Umbrella
- Security of payment – when working through an Umbrella company you are protected from non-payment. We are your employer and responsible for ensuring you get paid.
- Continuous employment – as an Umbrella employee, you can seamlessly switch between contracts. This provides you with one continuous tax code, saving you admin when switching assignments and allowing you to build a record of continuous employment which is helpful when applying for mortgages and other loans.
- Tax simplicity – when working through an Umbrella company you are an employee. This means National Insurance and Income Tax will be deducted at source and paid directly to HMRC.
- Employment rights & benefits – As an employee of our Umbrella, you are entitled to full UK employment rights and benefits, including sick pay, maternity/paternity/adoption leave & pay together with al other statutory employee benefits and discounts.
Agency PAYE
- Security of payment – you might not be entitled to the same degree of protection depending on how you are engaged. So, if the end client refuses to make a payment, you might lose out on pay.
- Continuous employment – if you choose PAYE with the agency, you will have to switch to another agency’s payroll if you take on another contract offered by a different agency, meaning there may be gaps in your employment record & more admin responsibilities.
- Tax simplicity – not all agencies operate their own payroll. But, if they do, you will likelyu be classed either as an employee or a worker of the agency. This means National Insuranc eand Income Tax will be deducted at source and paid directly to HMRC.
- Employment rights & benefits – if the agency does offer its own PAYE option, your right sand benefits will depend on how you are engaged. Employees receive mopre rights than workers, so it’s important to check your employment status.
We support thousands of contractors to work compliantly through our FCSA-accredited Umbrella company.
- Simple set-up – register and begin working within minutes
- Peace of mind knowing your tax, NI and other deductions are properly taken care of
- Full employment rights including access to our pension scheme, holiday pay, sick pay, and maternity/paternity leave
- Save £££ with our fantastic employee rewards scheme
- Build a record of continuous employment while enjoying flexible working. This will help you when applying for mortgages & other loans
- Additional employee benefits available to all, including our market-leading 24/7 personal accident insurance
- Secure online portal for timesheet submission, payslips, and easy communication
- Text message to let you know when you’ve been paid
- We are open from 8am to 8pm Monday to Friday and 9am to 12 noon on Saturdays for advice & support
- A wide range of insurances provided as standard, including public liability, employers’ liability, and professional indemnity
Compliance Guaranteed
We do everything the way it should be done, ensuring compliance at every step.
Trusted agency partner
We work alongside your employment agency to keep everything simple.
Security of payment
Security is a priority & we’ll text to let you know when you’ve been paid.
IR35 Advice
We’re experts in IR35 compliance so can offer tailored advice & guidance.
