Understanding PAYE, umbrella and limited company differences
When you register with Athona for locum, agency or temporary work, you’ll need to choose whether to become a Pay As You Earn (PAYE), Umbrella or Limited Company worker. It may seem complicated at first, but we’ve made things nice and simple.
Your Choices
Which one is best for me?
It’s up to you which option suits you best, but below are some pros and cons of each choice to help guide you:
PAYE
With PAYE, in effect, you will become an employee of Athona. This means our payroll department handles your taxation and NI contributions, as well as providing you with a payslip for your records.
What’s more, if you ever have any concerns regarding your work or pay, this can be handled under one roof – providing seamless continuity of our services. We also do not charge a fee and there’s minimal setup required.
Limited company
A limited company set up definitely offers a degree of freedom, and some benefits like being able to claim for expenses.
But at the same time, it’s your responsibility to both set up your company and maintain it. That comes with costs, and it takes time too.
*Depending on your contract, IR35 may apply to you. If IR35 does apply, Athona will be required to deduct the relevant tax and NI, and submit this to HMRC, on your behalf. Alternatively, if you are deemed to be working outside of IR35 you must handle your PAYE and NI yourself, rather than the body that is paying you.
Umbrella company
Umbrella companies act as the employer for those hired by agencies and ensure your taxation and national insurance obligations are taken care of. Choosing this option would essentially make you an employee of the umbrella company.
From April 2026, we are operating an Approved Supplier List of umbrella companies. After this time, no further payments will be made to umbrella companies who are not on the following list.
| Name | Telephone | |
|---|---|---|
| AJ Rayson Limited | 0161 513 3432 | info@ajrayson.com |
| EpayMe Limited | 01252 863 700 | admin@epayme.co.uk |
| Generate FS Limited | 0207 231 0349 | sales@generate-fs.co.uk |
| Mainpay Limited | 0207 808 6401 | info@mainpay.co.uk |
| Numbermill Limited | 0333 121 2001 | enquiries@numbermill.co.uk |
| Phillips Payroll Limited | 01224 074 070 | hello@phillipspayroll.com |
| Umbrella-Company Limited | 01625 546 610 | team@umbrella.co.uk |
| Workwell Solutions Limited | 01923 257 257 | agencysupport@workwellcontractorsolutions.com |
FAQ
We run two payrolls per week. Any timesheets received before 2pm on a Tuesday will be paid to you on the Friday of the same week. Any timesheets received before 2pm Thursday will be paid to you the following Tuesday. Please also ensure that all information is completed in a clear and precise manner on the timesheet, including correct start and end times, and that the timesheets have been authorised. Unsigned or illegible timesheets may cause delays to your payment.
If you are paid via an umbrella company, you will need to check with them directly regarding their payroll days.
If you have a P45 from a previous employer, please email this into your consultant and we can update the tax code from that. If you do not have a P45 you can complete a starter declaration found here.
This will enable us to submit your details to HMRC so they can sent us the correct tax code to use. If you are set up with an umbrella company, you will need to send these documents directly to them.
Holiday pay is calculated at 12.07% of your hourly rate. This amount is accrued by us until you request it to be paid.
If you are paid PAYE or Limited, you will receive your payslip from us each week on either a Wednesday or Friday depending on when we have processed your timesheet. If you are paid via an umbrella company, the umbrella company will send you a payslip. Please retain these for future use, however if you require further copies, please let your consultant know and we can arrange for these to be emailed to you.
Claims are calculated on a case by case basis depending on a number of factors. If you are PAYE, please contact the payroll team for more information on how to make a claim. If you are paid via an umbrella company, you will need to discuss any claims directly with them.
Please send your new bank details to your consultant so they can forward them on to the payroll team. Any bank details received before 5pm each Friday will be updated for any payments received the following week.
The upcoming May bank holiday payroll deadlines are as follows:
BANK HOLIDAY 4th MAY 2026
Timesheets for week ending 26th April 2026
First Payroll
Normal timesheet cut off of 2pm Tuesday 28th April 2026
Payment to be received Friday 1st May 2026*
Second Payroll
Earlier timesheet cut off of 10am Thursday 30th April 2026
Payment to be received Tuesday 5th May 2026*
BANK HOLIDAY 25th MAY 2026
Timesheets for week ending 17th May 2026
First Payroll
Normal timesheet cut off of 2pm Tuesday 19th May 2026
Payment to be received Friday 22nd May 2026*
Second Payroll
Earlier timesheet cut off of 10am Thursday 21st May 2026
Payment to be received Tuesday 26th May 2026*
*If you are paid via an umbrella company, they will need to contact them for their specific deadlines/pay dates
Get in touch today
To find out more or to discuss any of these options further, get in contact with your recruitment consultant today on 01277 217777.