Agency PAYE - how it works
Some Recruitment agencies allow you to become "PAYE" through their own payroll service.
This is the least tax beneficial option available to a contractor as you pay full tax and NI contributions on all your earnings. In addition this option does not allow you to claim valid business expenses that help to reduce your tax and NI liabilities. You will also not benefit from a rate “uplift” which occurs when the agency is no longer responsible for Employers National Insurance contributions
