published on
March 11, 2022

PAYE vs umbrella companies - what nurses and carers need to know

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In April 2021, IR35 legislation changes will come into effect which may impact the way you are paid for your shifts on Florence.

Due to the changes in law, we're moving to support PAYE workers only from April 2021. Many shifts posted by care home groups, will be PAYE only due to the changes in UK law.

Here, we explain why we don’t pay through umbrellas and the benefits of being a PAYE worker on Florence. 

Why we don’t pay our nurses and carers through umbrella companies 

We believe that these schemes don’t benefit our nurses and carers. 

Umbrella companies charge fees as well as taking the same deductions as PAYE.  Therefore, it’s better value to use PAYE as Florence pays for the payroll cost for you. 

If you’re working through an umbrella company that follows HMRC rules and they deduct your tax and NI correctly, by the time you’ve paid their fees for processing your pay you may well be earning less than a PAYE nurse or carer.

You can receive your pay earlier as a PAYE worker with Florence.

When you work for an umbrella company, your pay date is dependent on when the umbrella company is paid by the agency. As a PAYE nurse on Florence, you’ll be paid weekly on Thursdays before 6pm (if your timesheet is approved by 3pm the day before).

We want you to avoid serious HMRC fines. 

Umbrella companies often promise that you can take home the majority of your salary (up to 90%). This could mean that they are involved in a tax avoidance scheme, which could then be challenged at a later date by tax authorities and result in you receiving a large tax bill. 

If an umbrella company is offering to save you tax and boost your take home pay this should be a concern, as this is not possible via legitimate umbrella companies. A number of umbrella schemes have been found to be illegal and we are concerned that many of them do not comply with HMRC rules.

We therefore believe they pose a risk to our nurses by exposing you to unpaid taxes and penalties.  

If it sounds too good to be true, it probably is….  

A lot of umbrella companies quote high gross pay rates (gross pay is an individual's total earnings throughout a given period before any deductions are made). These are not comparable to the gross rates you see on Florence as National Insurance, pension deductions and payroll costs have not yet been taken. When you are a PAYE worker on Florence the actual amount you earn should be the same as quoted, or higher.

Questions? Get in touch

If you have any questions at all about becoming PAYE, please get in touch with your account manager by phone or on email, any time. 

If you’re unsure of your account manager’s contact details, you can call us to ask your question on 020 3911 2555, or email

Thanks for working with us during this time, we’re ready and listening for any feedback you have. 

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