How Much Mark-Up for PAYE Contract?

[WillieG]

To cut a long story short, I'm on a PAYE contract through an Agency who charge my services to a Contractor, who in turn charge me to a Client. I discovered recently that the Agency charges the Contractor +83% on top of the gross rate the Agency pay me. They claim that's about right as they have necessary add-ons such as payroll burden and employers NIC and others. I'm not disputing certain add-ons but 83% seems excessive so I'm sure they are marking up too much. Would appreciate any feedback as to whether +83% on a PAYE contract is legitimate or not. Thanks.

[WTFH]

Hi Willie,
A few questions…
You say you’re on a PAYE contract, but then you say your re being paid gross, is that correct?
How did you discover what the agent is being paid by their client?
Does the figure you “discovered” include VAT?

As a helpful note - you are the contractor. If the people that are paying the agent are a client of theirs, not a contractor. The people at the top of the chain are the end client.

[hugebrain]

To cut a long story short, I'm on a PAYE contract through an Agency who charge my services to a Contractor, who in turn charge me to a Client. I discovered recently that the Agency charges the Contractor +83% on top of the gross rate the Agency pay me. They claim that's about right as they have necessary add-ons such as payroll burden and employers NIC and others. I'm not disputing certain add-ons but 83% seems excessive so I'm sure they are marking up too much. Would appreciate any feedback as to whether +83% on a PAYE contract is legitimate or not. Thanks.

Yes it is excessive, but it is mostly the public sector scum who are ripping you off.

Without agency fees, an umbrella wants to charge a 93% markup on what I would receive.

Greedy nurses want a huge pay rise so you can expect that to go up.

[SueEllen]

Next time you are in hospital or clinic show them your post.

[northernladuk]

Hi Willie,
A few questions…
You say you’re on a PAYE contract, but then you say your re being paid gross, is that correct?
How did you discover what the agent is being paid by their client?
Does the figure you “discovered” include VAT?

As a helpful note - you are the contractor. If the people that are paying the agent are a client of theirs, not a contractor. The people at the top of the chain are the end client.

I think he means consultancy