As a supply teacher you may find yourself employed by a number of different schools or agencies throughout the tax year, particularly if you’re opting for short term/day-to-day supply teaching work. This can often make it difficult for the Inland Revenue to decide just how much PAYE tax should be deducted from your wages and so there may be times when you are placed on a high rate emergency tax, the overpayments of which can be claimed back at a later date.
What is an Umbrella company?
An umbrella company is an intermediary that acts as your employer to process your PAYE, rather than the agency you work through. Working through an Umbrella company (as opposed to PAYE) allows umbrella workers, under some circumstances, to offset the cost of their travel and subsistence expenses both in getting to work and whilst at a school.
Claiming expenses pre-tax reduces an umbrella worker’s taxable gross salary and subsequently the amount of tax paid. On the whole, there is usually a 5 -10% difference in the rate of take home pay when using an Umbrella company rather than straight PAYE.
It is worth noting that Umbrella companies do charge fees for this service; however, your daily rate is still likely to be higher than if you opt for PAYE.
Presently we offer a choice of four of the most recognised companies in the education sector which were selected based on their:
- Excellent compliance and service.
- Ability to deliver a financial benefit to you.
- Portability – these companies are commonly used throughout the education sector and therefore it is easier to move between agencies or work for more than one.
RACS Group - 0845 604 0571
ISS Ltd - 0800 0284 211
My Key Pay - 0800 019 4511
CXC Global - 020 7374 6957
If you're still unsure about how to proceed, contact Marie or Emily in payroll. They will be more than happy to help. Contact us today!