If you work as a locum healthcare professional, you have probably noticed increasing discussion around umbrella companies, PAYE compliance and payroll transparency over recent months.
That follows the payroll and compliance changes introduced in April 2026, which placed greater responsibility on agencies and labour supply chains to ensure payroll arrangements are fully compliant.
For locums, the practical question remains the same:
Which payroll option actually fits the way you work?
Why umbrella payroll is under greater scrutiny
For years, umbrella companies have been widely used across healthcare recruitment, particularly by locums working across multiple agencies or NHS trusts.
Most umbrella arrangements are legitimate. However, parts of the sector have also seen:
- unclear deductions
- non-compliant tax models
- misleading take-home pay claims
- poor payslip transparency
The changes introduced in April were designed to strengthen accountability across the supply chain and reduce the use of non-compliant payroll models.
That means agencies are now expected to carry out greater due diligence on the umbrella providers associated with their workforce.
For clinicians, it means transparency matters more than ever.
PAYE or umbrella: what actually suits your situation?
There is no single “best” option for every locum.
The right setup usually depends on how you work.
PAYE often suits clinicians who:
- mainly work through one agency
- want straightforward weekly pay
- prefer fewer deductions
- want minimal admin
- value direct support from one payroll process
For many locums, PAYE is simply easier to manage.
Umbrella payroll can suit clinicians who:
- work across multiple agencies
- move frequently between contracts
- want one continuous employment arrangement
- prefer payroll administration to sit with one provider
The important thing is understanding exactly how you are being paid, what deductions are being made, and who is responsible for processing them.
What clinicians should look for
Whether you choose PAYE or umbrella payroll, you should expect:
- clear payslips
- transparent deductions
- compliant PAYE processing
- realistic take-home pay expectations
- accessible support if something does not look right
If a payroll arrangement appears overly complicated or promises unusually high take-home pay percentages, it is worth asking further questions.
Our approach at Hunter Gatherer AHP
At Hunter Gatherer AHP, we want clinicians to understand their options clearly before starting a placement.
If you choose umbrella payroll, we strongly recommend using one of the compliant providers on our approved PSL.
Our PSL providers are reviewed against payroll and compliance standards to help ensure:
- transparent deductions
- compliant PAYE processing
- clear communication
- reliable onboarding support
We also continue to support PAYE workers directly through our internal payroll processes.
Unsure which option is right for you?
Our team can talk you through both options before onboarding so you understand:
- how each setup works in practice
- what deductions to expect
- what may suit your working pattern best
Speak to the HG AHP team before your next placement to discuss your preferred payroll arrangement.