Pay As You Earn means employers must deduct income tax and national insurance directly from employees pay and pass over to HMRC.
A contractor may be employed by an agency and have PAYE applied to their earnings, meaning the agency is responsible for deducting income tax and national insurance from the contractor’s pay.
A contractor can also go through an umbrella company, who will employ the contractor and make these deductions and pass over to HMRC instead of the agency.
At Raise we allow for reputable umbrella companies that offer PAYE options, to engage with recruitment agencies. The platform will then raise all invoices and move money to the umbrella on behalf of the agency, once timesheets have been authorised by the end-client.