If you found work through an agency, they would normally deal with your pay themselves. However these days, agencies prefer not to do this as it saves them time and money and means they can concentrate on matching workers with available work. As such, they usually suggest that people use an Umbrella Company. It isn't against the law for them to do this, although when they pass you over to an Umbrella Company they should make sure they also hand over sufficient funds to cover all the employment costs that the Umbrella Company will now have. This should include an amount to cover the Umbrella Company charge (more on this later). Because the Umbrella Company becomes your employer, they will deal with your pay and other employer obligations instead of the agency. This includes paying you your wages with tax and National Insurance (NIC) deducted as required by the Pay As You Earn (PAYE) system.