Agency work
Invoicing recruitment agencies, umbrella companies, self-billing and getting paid on time when you work through an agency.
How getting paid through an agency works
If you work through a recruitment agency, there are three common set-ups, and each one changes who writes the invoice:
- Self-employed (sole trader): you invoice the agency, usually weekly, for the hours or days on your approved timesheet. See how to invoice an agency weekly.
- Self-billing: the agency raises the invoice on your behalf from your timesheet, under a written self-billing agreement. You don't send one yourself, but you should check every one. See self-billing explained.
- Umbrella company: you're employed by the umbrella. The umbrella invoices the agency and pays you through PAYE, so you don't invoice anyone. See umbrella vs self-employed.
Where agency invoices go wrong
Most late payments come from small mismatches: hours that don't match the approved timesheet, a missing purchase order or worker reference, the wrong week-ending date, or an invoice sent after the agency's weekly cut-off. Find out the cut-off day and the reference they want before your first week, and put the week-ending date on every invoice.
Questions
Do I invoice the agency or the end client?
Normally the agency, because your contract is with them. Invoice the end client only if your contract says so.
Can I invoice an agency if I'm paid through an umbrella?
No. The umbrella company employs you and invoices the agency, and you're paid a salary through PAYE.
What does an agency need on a weekly invoice?
Your details, the agency's details, a unique invoice number, the week-ending date, the hours or days worked at your agreed rate, any reference they've given you, and the total.