Why Choose PAYE?
For most UK medical agency nurses, PAYE can provide a simpler, more transparent and often more cost-effective way to receive your pay.
Income Tax and National Insurance are deducted directly through HMRC’s PAYE system, helping to make your deductions straightforward and reduce the risk of tax issues later. Your payslip also clearly shows the deductions that have been made.
Umbrella companies often deduct fees from your pay before you receive it, and some may apply additional deductions or charges that can reduce your take-home pay.
With PAYE, you generally avoid these umbrella company fees and charges, helping more of your earnings stay in your pocket.
Key Benefits of PAYE
Choosing PAYE means dealing directly with the recruitment agency, without an umbrella company involved in managing your pay.
With PAYE, you can also benefit from:
- No weekly or monthly umbrella company administration charges
- More predictable payslips, making your pay easier to understand and budget for, without unexpected umbrella deductions
- Less paperwork, including umbrella company contracts and expenses rules
- Easier resolution of payroll queries
- Reduced risk of becoming involved in non-compliant pay schemes that could result in future tax bills from HMRC
Understanding Your Tax Code
If you believe you’ve been placed on the wrong tax code, you can contact HMRC and ask them to review it. Check the code shown on your payslip. If it ends in W1, M1, X or NONCUM, you’re likely to be on an emergency tax code.
Contact HMRC’s Tax helpline on 0300 200 3300. Explain when you started your current agency role, whether you have any other jobs and whether you’ve recently changed employers. It’s also useful to have the following information available:
- Your National Insurance number
- PAYE reference, from your payslip if available
- Employer or agency’s name
- Your most recent payslip
- Your P45, if you have one
HMRC will issue a new tax code. Check your next payslip to make sure the updated code has been applied. If you’ve paid too much tax, any refund is often made automatically through your wages.
Need Help With Your Payment Options?
If you’d like to find out more about PAYE or discuss the payment options available to you, speak to your ID Medical Consultant.
For questions about your individual tax code, please contact HMRC directly.
HMRC also offers a helpful calculator where you can calculate your PAYE take-home pay. You can access it here.