If you opt to work through an agency you may be quoted two rates – one which will apply if you work PAYE through their payroll, and another ‘higher’ rate if you use an Umbrella 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 handling employer's National Insurance contributions and managing your payroll.
Further reading
Agency payroll or umbrella company?
Bookmark using:
![[img]](/umbraco/ImageGen.ashx?height=70&width=70&crop=resize&image=/media/800488/flsm should freelancers be concerned about new ir35 guidelines.png)
![[img]](/umbraco/ImageGen.ashx?height=70&width=70&crop=resize&image=/media/799468/taxpayers.png)
![[img]](/umbraco/ImageGen.ashx?height=70&width=70&crop=resize&image=/media/799182/small-businessman.gif)
![[img]](/umbraco/ImageGen.ashx?height=70&width=70&crop=resize&image=/media/798608/flsm will 40 winks at lunchtime improve your productivity.png)
![[img]](/umbraco/ImageGen.ashx?height=70&width=70&crop=resize&image=/media/798098/flsm can you still afford to retire at 65.png)
![[UK]](/images/new/icon-flag-small-blue.jpg){kind=icon}
![[loading]](/images/loading.gif)