Choosing to work through an agency does have its benefits. The agency will source work on your behalf, plus there is a degree of flexibility and variety to your work schedule. On the other hand, you'll receive less take home pay, and it is very difficult to build a career as a contractor from agency work.

  • If you want occasional work or work to fill in the gaps for other occasional employment.
  • If you have no long-term plans to build and grow a small business of your own.
  • If you are happy with the agency to source work and sort taxes on your behalf, in exchange for a cut of your wage.

If you choose to work directly with an agency, you will not be able to offset business expenses like travel and subsistence against your taxable pay that umbrella company employees are able to claim, provided they pass SDC test. Which means, your take home income will be lower than umbrella company employees, based on the same hourly rate.

If you work directly through an agency, you will most likely be offered a lower hourly rate to compensate for the employer’s national insurance and operational cost of running a payroll.

I used to dread accounting month but the last 2 years have been utterly pain free because of this super lot! Efficient, professional, thorough and really dedicated to saving you money. The savings they made me more than paid for their services! Many thanks.


SkyTax helped reactivate the company, get books up to date and all formalities in order as it should be. I'm very happy with how they approached the challenge and came through all the way. Solution oriented, agile, available and fast. 

Mr. Tor Karstensen, NOVYTEC LIMITED

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