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Supply agencies forcing you to go with umbrella scheme

(7 Posts)
russetbella1000 Tue 13-Sep-16 14:55:14

Seriously, I've heard so much about how dodgy these are, about how unions state an agency cannot 'force' you to use one & REC members shouldn't be etc etc BUT every single agency is trying it!!! Why isn't there some consensus? Radio 4 were talking about it last week, with the upshot being you should demand PAYE etc but what is the teacher to do when unless you join 'we can't guarantee you work'. It's a complete racket!

HerRoyalNotness Tue 13-Sep-16 15:02:16

Will you be working for different schools or the same school? They're not dodgy if you're working at different ones, or actually if you're working through an agency and not as a staff member

DitheringDiva Tue 13-Sep-16 20:26:56

I had the same problem when I did supply teaching - I also couldn't work out what I was supposed to do if every supply agency would only pay through an umbrella scheme (which I abhorred). It's OK all these people going on about how we shouldn't allow ourselves to be paid through one, but what to do if there's no choice?

I suppose I did make a choice in the end, and that is I found a part-time temporary job directly with a school, but what if someone just wants to day-to-day supply?

russetbella1000 Tue 13-Sep-16 20:58:21

I know.
If they're not dodgy why when you google anything about them the advice is to 'steer clear'. When you call HMRC they can't give you ANY advice etc. It's just the case of signing up and then when the proverbial hits the fan (maybe?) HMRC will come after you and question why you didn't pursue PAYE.

I don't really understand any of it but the way the agencies try and coerce to use the umbrella scheme just doesn't sit right with me.

Badbadbunny Wed 14-Sep-16 08:34:41

Nothing "dodgy" about the vast majority of umbrella's. They've been the standard way of dealing with temp/agency workers for a decade or two. More likely these days as the agencies don't want the risks/costs of having you on their payroll (mat/pat pay, holiday pay, sick pay, risk of employment rights court cases etc).

The "dodginess" comes about by some workers who don't want to pay the right amount of tax/nic and go with the umbrella's that offer schemes to pay a much higher "take home" via trusts, loans, and other convoluted schemes, and some tamer schemes which take the piss about diverting some of your wage and calling it expenses instead to avoid tax/nic.

If you choose a "normal" umbrella that just processes the payroll and doesn't offer any dodgy tax avoidance schemes, then you're going to be fine!

MrsGuyOfGisbo Wed 14-Sep-16 15:52:28

I ma with two agencies that pay me PAYE. Other agencies tried to 'force me hmm but they can't force you - just go elsewhere . there are plenty of hones agencies - just avoid the umbrella scam cowboys (which includes one of the largest agencies, as it happens angry)

russetbella1000 Wed 14-Sep-16 23:13:55

Yep, I'm now PAYE with two agencies so should be fine.

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