Agency PAYE vs umbrella company: what’s best for recruiters?

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One of the many perks contractors enjoy is the chance to choose which employment structure best suits their needs. Do they want to jump in the deep end and set up a limited company? Or would they prefer a little more support and a lot less admin? PAYE or Umbrella, essentially.

If the latter option proves more appealing, then you as a recruiter will have to make a decision, too. There are two routes you and your firm can take – employ contractors yourselves or outsource the responsibility to an umbrella company.

Call us biased, but we believe the second option is definitely the way to go. To help prove our opinion, we’ve produced this infographic to illustrate the benefits of working with a compliant umbrella company like Parasol. And if your candidates are open to even more contracting options, compare Umbrella vs Limited Company. If it's the right move for their earning potential and capabilities, a limited company option is available through our sister company ClearSky.

Compare and contrast the Agency PAYE or Umbrella company options:

PAYE vs Umbrella? Parasol offer a close look at why recruiters will benefit from choosing an Umbrella Company

PAYE or Umbrella: the recruitment difference is clear

So the PAYE or Umbrella discussion is really not much of a debate at all for recruiters. Umbrella helps you take care of:

  • All your admin
  • Management of additional employees
  • Compliance with AWR
  • Auto enrolment for contractors
  • All liability worries
  • Complex legislation, like T&S
  • Any other distractions

In short, PAYE or Umbrella is more like PAYE < Umbrella.

Want to know more?

We hope we've managed to convince you that trusting your contractors to an umbrella company is the way to go. Not only will umbrella services shield you from employment risk and unnecessary burden, but it will also make sure your contractors are well looked after. Furthermore, an expert service from the likes of Parasol ensures you can be fully compliant and have time to get back to working with clients to place your candidates.

So why should you choose us? Instead of us waxing lyrical about how great we are, why not find out for yourself? Take a look at our contractor testimonials and contact our expert team to find out more.

To get in touch, please call 01925 644 423 or email