The most important thing for us is that you understand what we do, why we do it and that your choice to work for Payco PAYE really works for you. Payco PAYE works best for people who are normally self-employed and get some (or sometimes all) of their work with the help of agencies.

So why are you working for us?

There can often be a number of reasons but we think they may well normally come down to flexibility. You very likely earn your living working on different contracts, long term, short term or both, working directly for a host of different agencies and/or companies. This can be complicated, time consuming and difficult to keep up with, but working with Payco PAYE for some or all of these contracts is much easier. We have all your details, we always let you know what is going on and if anything changes with you, then you just need to let us know.

Transparency.

This really is important. We appreciate that the different rules that come into play when you find your work with the help of an agency can make it less than straight forward. However we work extremely hard to make sure you understand exactly how it all works so you can make the right choices and we believe the key is clear paperwork, information and explanation.

Am I self-employed or an Employee?

You are very definitely self-employed. You may have an option to change this and be an employee, it can depend on the contract terms the agency is able to offer us and if you think you would prefer this and want to check then please contact us. However we both agree the terms that make up the contract between us and those terms are clear that you are not our employee nor are you our worker.

In addition, and as a result of legislation introduced in April 2014, because your work is via an agency we also need to consider another rule when we pay you. This rule is only relevant to your payment but basically if you are or you can be supervised, directed or controlled in the way you do the work you do then when you are paid we have to account for tax as if you were an employee.

Fairness.

So is this contract fair? You are not an employee or a worker so you don’t have any of those rights. No right to National Minimum Wage or National Living Wage, no right to holiday pay or a pension. It is only fair if we both agree it.

Payco PAYE offers flexibility, it allows you to decide how much you want to work for at any given time, what hours you want to work, when you take a holiday or other break and how you pay for it. It doesn’t require you to have a pension when you may already have a perfectly good one or want to do your own thing when you are ready. Anyway you may not plan to work with agencies for that long so having £20 in 3 or 4 different agency pension pots may not be of any particular use to you.

Always getting the best deal

As a subcontractor to Payco PAYE any work you do is for us and we work for the Agencies that have the contracts you work on. The rate agreed is the rate payable to us, we will always have to take our costs from the money received from the agency but we keep our company costs very low. Our costs include our “employer” costs. Your contract is with us and when we come to pay you we have to pay tax as if you were our employee so these costs fall on us.

On any contract you work on there is what is called a “contractual chain”, you’re in it, we’re in it, the agency is in it and the client receiving the direct benefit of the work you do is in it. Payment rates are agreed down the chain, the Client will agree one payable to the Agency and the Agency will agree one payable to us. This rate includes everything, including the employer costs, so that when we have to pay these you don’t lose out.

In fact there may well be occasions where our employer costs might work out to be slightly less than they would have been for the agency (maybe as a result of an expense claim or such like) and where this happens this can sometimes actually increase your income.

Finally and most importantly, if you have any issues, any questions or concerns at all please call or email our Customer Service Team at any time.


We hope this information helps, please call 0845 1300 551 or email enquiries@paycoservices.co.uk with any
questions you may have