PAYE or Umbrella

[KurriKawari]

I've always worked permanent jobs with monthly payslips all managed in house. Had a job offer and they've asked if I want to be paid via PAYE or Umbrella. I think PAYE but don't feel I know enough to decide between the two :)

PAYE - would be £50ph, paid annual leave, can join pension scheme
Umbrella - would be £58ph, annual leave is unpaid, no pension scheme, have to pay fee to Umbrella company for admin of time sheets etc.

Is there something really obvious that I'm missing about why one option would be better than the other? Thank you.

I worked as for a well known umbrella company for around 3 years and would advise you to steer clear, they’re greedy and usually the MD is a money grabbing account, the payrolls is ran with people on low wage running the payroll. Please stick to PAYE - you will see lots of petitions out there trying to shut down umbrellas as they’re morally wrong

Surely you would get more than £8 per hour back from pension contributions, and paid A/L if you went PAYE?

The fact that they seem to offer both tells me they are scammers looking to evade their responsibility. PAYE every time, unless they are paying double I suppose. They are saving stacks.

Employment status is not just something employers can pick at will.

Thank you. Really helpful advice. I did say PAYE to them but felt if they were offering Umbrella there must a good reason for it, now realise the "good reason" is in their favour :)

Its common in my industry to be offered umbrella. Umbrella rate is usually a LOT more than an extra 8 quid.