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Why has my Agency quoted me a PAYE rate and a Limited company rate?

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If you opt to work through an agency you may be quoted 2 rates - one which will apply if you work PAYE through their payroll, and another 'higher' rate if you use an Umbrella Company or Limited Company. You are quoted a lower rate for working PAYE at the agency because the agency takes on all the employer responsibilities and, all the financial obligations that are involved including: Employer's National Insurance, and managing your payroll.

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