Agent quoting Umbrella rate but paying PAYE rate

[TheDude]

Hi,

I have been offered what sounds like a decent inside rate however the agent says they like to quote equivalent umbrella rate even though this will be a PAYE engagement.

To compare the two rates do I simply deduct Employers NI, Apprenticeships levy etc. from the umbrella rate?

If I do this then the PAYE rate comes up quite a bit shorter than I would expect and lower than the take home value that most inside IR35 calculators produce when the umbrella rate is entered.

[northernladuk]

We've had quite a few threads on this type of topic so might be worth having a look at a generic search such as the following
https://www.google.com/search?q=Agen...hrome&ie=UTF-8

Or a google search on the forums particularly but trying different keywords.

Something like

https://www.google.com/search?q=agen...client=gws-wiz

[eek]

Hi,

I have been offered what sounds like a decent inside rate however the agent says they like to quote equivalent umbrella rate even though this will be a PAYE engagement.

To compare the two rates do I simply deduct Employers NI, Apprenticeships levy etc. from the umbrella rate?

If I do this then the PAYE rate comes up quite a bit shorter than I would expect and lower than the take home value that most inside IR35 calculators produce when the umbrella rate is entered.

Nope

It's employer NI 15.05%
Apprenticeship levy 0.5%
Employer Pension 3% (but less in reality given what your day rate will be).

And holiday pay - which until last week was 12.07% but is now very much not a clue as the risks are unknown so could easily be 15-18%. And that would need to be taken before the employer NI was deducted rather than alongside as was the case in the past.

[CheeseSlice]

Just ask for the key information document for PAYE? Agency needs to stop playing around. If it's PAYE then quote it properly.

[eek]

Just ask for the key information document for PAYE? Agency needs to stop playing around. If it's PAYE then quote it properly.

I'm sure he will get the appropriate Key Information Document - the issue is that the agency advertised an Assignment Fee rather than a PAYE rate and he wanted to know what the employment costs were.

And all agencies play that trick because if they advertised a PAYE rate and another agency advertised an Assignment Fee rate none of the candidates would answer an advert with a PAYE rate

[TheDude]

I'm sure he will get the appropriate Key Information Document - the issue is that the agency advertised an Assignment Fee rather than a PAYE rate and he wanted to know what the employment costs were.

And all agencies play that trick because if they advertised a PAYE rate and another agency advertised an Assignment Fee rate none of the candidates would answer an advert with a PAYE rate

The agency didn't advertise anything. The hiring manager reached out to a recruiter he had a relationship with because he was desperate to fill a role and I was approached because I had a relationship with the recruiter.

The whole approach was under the counter but is now being formalised through the firms onboarding system. If it all goes through then I am effectively looking at a 40% bump on my inside rate however I suspect there may be bumps in the road...