If you’re working as a contractor or locum through CAMHS Professionals, one of the first decisions you’ll face is how you want to be paid: through PAYE (Pay As You Earn) or via an Umbrella Company. It might sound like a small admin detail, but it can have a real impact on your take-home pay, employment rights, and day-to-day admin.
This guide breaks down both options clearly, so you can make the best choice for your situation.
What Is PAYE?
PAYE stands for Pay As You Earn. Under this model, you are paid directly by CAMHS Professionals through our own payroll system. Your tax and National Insurance contributions are automatically calculated and deducted before your pay reaches your bank account — just like a standard salaried role.
Benefits of PAYE
- More take-home pay — there are no umbrella company fees to eat into your earnings
- Simple, transparent payslips — easy to understand, with no confusing deductions
- Holiday pay — accrued and paid as part of your employment
- Employer pension contributions included
- Statutory Sick Pay (SSP) entitlement
- Full employment rights — you’re protected under UK employment law
- Less admin — we handle everything; you just focus on your work
Things to Consider with PAYE
- If you work across multiple agencies simultaneously, PAYE can be less flexible
- You may need a new contract issued if you switch agencies
- Fewer “contractor-style” perks compared to umbrella arrangements
What Is an Umbrella Company?
An Umbrella Company is a third-party employer that sits between you and CAMHS Professionals. You become an employee of the umbrella company, which then receives payment from us on your behalf, processes your tax and NI, and pays you your net wages.
This model is particularly popular with higher-rate contractors and those working across multiple roles or agencies at once.
Benefits of Umbrella
- Continuity of employment — ideal if you move between roles or agencies regularly
- One consolidated payslip — even if you’re working across different positions
- Admin handled for you — the umbrella company processes tax, NI, and payroll
- Access to additional perks — some umbrella companies offer benefits such as insurance, healthcare discounts, and more
- Suitable for higher-rate contractors who benefit from the structure
Things to Consider with Umbrella
- Weekly or monthly fees — typically £15–£30, which reduces your take-home pay
- More complex payslips — with multiple deductions, they can be harder to follow
- Lower net pay overall — fees and costs can add up, particularly for lower-rate roles
PAYE vs Umbrella: Side-by-Side Comparison
| Comparison | PAYE | Umbrella |
|---|---|---|
| Who pays you? | CAMHS Professionals directly | Third-party umbrella company |
| Fees? | None | £15–£30/week or month |
| Payslip complexity | Simple | More complex |
| Holiday pay | ✅ Included | Varies by provider |
| Pension contributions | ✅ Employer contributions | Varies by provider |
| Sick pay (SSP) | ✅ Entitled | ✅ Entitled |
| Employment rights | ✅ Full | ✅ Full (as umbrella employee) |
| Best for | Most contractors and locums | Higher-rate or multi-agency workers |
Which Option Is Right for You?
Choose PAYE if:
- You want simplicity and transparency
- You want to maximise your take-home pay
- You’re working through one agency at a time
- You prefer not to deal with third-party companies
Choose Umbrella if:
- You work across multiple agencies or roles simultaneously
- You’re a higher-rate contractor and the structure suits your tax situation
- You want continuity of employment across varied assignments
- Your umbrella company offers additional benefits that matter to you
A Note on Compliance
Whichever option you choose, always make sure your umbrella company is FCSA-accredited or a member of a recognised professional body. Unfortunately, non-compliant umbrella schemes do exist, and they can land workers with unexpected tax bills. If in doubt, ask us — we’re happy to help guide you.
Speak to the CAMHS Professionals Team
Still not sure which option suits you? Our team is here to help. We work with mental health professionals across the UK every day and can talk you through your options based on your specific role, rate, and circumstances.
📞 Get in touch with CAMHS Professionals today — we’ll make sure your pay setup works for you, not against you.
This article is for general guidance only and does not constitute financial or tax advice. We recommend speaking to an independent financial adviser or accountant for personalised advice.
