How you wish to set yourself up to be paid is up to you and we would suggest you get independent advice if you are confused by the different options to work out what is best for you and your circumstances.

Here is a brief description of each option

PAYE- You are paid through the school's payroll.  All deductions are made automatically and you will be auto enrolled into the Teachers Pension Scheme unless you opt out.  You are an employee of the school  and subject to the schools conditions of employment and will be paid when the school runs its payroll.

Umbrella Company- You are paid by the Umbrella company and all deductions are made for you.  The company will also charge you a fee for carrying out the administration on your behalf.  Umbrella companies will also have a pension scheme which you will be auto enrolled into unless you opt out. You will be an employee of the umbrella company and unless you have a separate agreement, you would be paid when they have received payment from the school you were working at.

Sole trader or Limited Company- For supply teaching, it is in most cases not possible to be self-employed. Please refer to HMRC's website for more information: https://www.gov.uk/guidance/check-employment-status-for-tax. Also note that most schools prefer their teachers to be paid as PAYE our through an Umbrella company. 

If you are considering working as a self-employed teacher, it is vital to seek professional advice based on your personal circumstances. There are limited situations where this may be possible, but for most teachers, this is unlikely to be a good solution. 

Please contact us on 0330 122 6629 if you have any further questions, or the HMRC Employment status helpline direct on 0300 123 2326, 08.30-16.30, Monday to Friday. 

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