Here we explore why PAYE is best for supply educators, highlighting its transparency, stability, and compliance with HMRC regulations. Learn how SupplyWell prioritises ethical practices, avoiding the pitfalls of umbrella companies - and ensuring educators' financial wellbeing.
Fair pay is a fundamental right, not a privilege. At SupplyWell, we ensure all our educators receive their earnings directly through Pay As You Earn (PAYE). This transparent approach eliminates the complexities and potential pitfalls associated with umbrella companies, providing educators with peace of mind and financial security. By choosing SupplyWell, you’re choosing a recruitment partner committed to fair pay and ethical practices.
Recent controversies surrounding some umbrella companies and scrutiny by HMRC have highlighted the importance of maintaining high standards in payroll practices.
Here we’re exploring why PAYE is a better option for educators, and how working with SupplyWell means we’ve always got your best interests in mind.
What is PAYE, and Why Does It Matter?
The Pay As You Earn system, managed by HMRC, is the standard for UK workers. Under PAYE, taxes and National Insurance contributions are automatically deducted from your pay, providing a straightforward approach to tax compliance. PAYE also offers stability and transparency, ensuring our educators know exactly what to expect when they receive their wages, with no surprises or unexpected deductions on their payslips.
In stark contrast, umbrella companies, which many recruitment agencies use, often involve third-party payroll providers that deduct additional fees or expenses from the worker’s pay. While these companies technically handle tax deductions, the lack of transparency and control can leave educators vulnerable to hidden fees, unanticipated tax liabilities, and additional stress.
Umbrella Company Controversies: What Educators Should Know
The use of umbrella companies has been under increasing scrutiny in the UK, particularly regarding their impact on workers’ financial wellbeing. In recent years, HMRC has investigated several umbrella companies over allegations of mishandling funds, incorrect tax deductions, and complex fee structures that are disadvantageous to workers. This scrutiny reflects a growing concern about how some umbrella companies operate, prioritising profits over transparency and ethical pay practices.
These issues have become especially pressing as HMRC is cracking down on tax avoidance schemes associated with some umbrella companies. In some cases, educators paid through these companies may find themselves unintentionally involved in tax-related issues, or even liable for underpaid taxes. For educators, this has created an uncertain and sometimes risky pay environment, with significant stress and financial implications.
In the latest Autumn Budget, the UK government introduced a game-changing policy for the umbrella company sector, emphasising accountability. Starting in 2026, if an umbrella company falls short in meeting its PAYE (Pay As You Earn) tax or National Insurance Contributions (NICs) obligations, that debt can now shift onto the end client (i.e. the educator) or the recruitment agency involved. In other words, any non-compliance by an umbrella company could lead to serious financial repercussions for the worker. This policy shift means anyone choosing to use umbrella companies, needs to exercise much greater diligence when selecting an umbrella company – safeguarding themselves from unexpected debt liabilities down the line.
How SupplyWell Is Different: Committed to Ethical and Transparent PAYE Payments
SupplyWell is committed to making the lives of educators easier. By using PAYE, we ensure our educators receive their earnings directly, without hidden fees or complex payroll processes. This simple and transparent approach allows educators to focus on what they do best: teaching.
- Transparency and Trust
Every payslip reflects the true earnings you’ve worked for, with no hidden charges or unnecessary deductions. You know exactly what you’re being paid and how much tax is being deducted, and you can trust that your earnings are handled in line with HMRC regulations. - Reliable Tax Compliance
PAYE ensures your tax contributions and National Insurance are handled directly, with HMRC involved in every step. This eliminates the risk of tax-related liabilities, which are often associated with umbrella companies, giving you peace of mind your taxes are managed correctly. - No Hidden Fees & In-House Support
When you’re paid by SupplyWell, there is no third-party involvement or any extra fees. Umbrella companies often charge administration fees, but our dedicated in-house finance team take care of all of it without any deductions. Better still, you can contact SupplyWell directly should you ever have any pay-related queries. - Employment Benefits
PAYE payments enable you to access statutory benefits more readily, such as sick leave and pension contributions. These benefits may be limited or even non-existent under umbrella companies, as you’ll often be treated as contractors rather than workers.
Making the Choice for Long-Term Financial Stability and Peace of Mind
Educators are passionate, dedicated professionals, and deserve to be treated correctly and fairly in every aspect of their careers – including pay. Using PAYE reflects SupplyWell’s dedication to supporting educators with the stability, trust, and transparency they deserve.
While some companies may prioritise profit over people, SupplyWell is committed to ethical practices and supporting educators. By choosing PAYE, we’re ensuring your financial security and helping you focus on what truly matters: educating the next generation.
So are you ready to join a fairer future in education?