Not all agencies run a payroll for temps that they place on assignment with their clients.

The Agencies Act forbids a UK agency to make a gross payment to an individual. So, if you are working through an agency that doesn’t run a payroll for its temps the options are to either have your own limited company or work through an umbrella company.

If you are working through an agency that will pay you through their payroll then your income will be subject to full PAYE and NICs. You will be unable to offset eligible business expenses against your earnings even though you have to incur them to do your job. The more agencies you work with then the more payroll contacts you will have so you’re never on the correct tax code. What this means is that you end up paying more tax than you need to. And what about the paperwork? Although you will receive a payslip when you are paid it is unlikely that you will be able to access historical information regarding your payments when you need it.