Hi guys

I know this is a topic that's been done to death but just thought I'd fish for some answers cos I think I might be getting underpaid.

I'm a print designer with 7 years experience and I live in London. I'm working freelance through an agency and they are paying me £16 per hour.

Does this sound reasonable to you guys?

I just get the feeling they should be paying me more, but I'm not a very assertive person and I tend just to take what I'm offered.

Thank you for the advice.

I just spoke to my agency and they said they would reduce my rate by one pound an hour if I go PAYE with them, this would work out as about £37 less per week, the employees NI contribution I'm paying with the umbrella company is £42 per week so I suppose there is not much difference.

I guess it is time to start considering setting up my own Ltd company. Does the initial setup cost a lot? How do you go about starting it? I really have no idea and the though of all the confusing paperwork scares me!

Hi everyone

I'm new to this forum, my name is Suzanne and I've recently quit my job and decided to go freelance as a designer. I have a few jobs lined up through contacts and I've signed up with a few different agencies so there's no shortage of work. The problem is how to get paid for it.

I decided to register under an umbrella company, I though this would be best because PAYE through the agencies doesn't make you as much money, and setting up a limited company is a commitment I'm not sure I want to make as I'm not sure how long I want to do this for.

But having looked into it, I'm not sure these umbrella companies are such a good idea, one thing I didn't realise is that I have to pay employee AND employer National Insurance, this works out as a lot each week. I know it should be offset by the tax breaks, but as far as I can see the only tax break I get is millage allowance, which doesn't add up to that much. Is there other tax breaks I don't know about?

Basically what i want to know is; would I be better off going PAYE with an agency, or is the umbrella company better? I though for sure the umbrella company would be better but now I'm not convinced, is there something I'm missing?

Please can anyone explain this to me? I'm so confused!