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agency teacher: best set-up PAYE, umbrella company or self employed?

agency teacher: best set-up PAYE, umbrella...

A supply teacher has been working for an agency and is busy most school days.  Other supply teachers have been approached by pay service umbrella companies who deliver tax breaks on mileage and £20/day meal allowances.

Why can't the teacher claim these allowances directly without the involvement of a pay service company and their expensive commissions? Section 337 ITEPA 2003 seems to work against agency teachers and puts all separate schools  worked at into a single permanent unit. The teacher however often works at 5 different schools a week a short notice

Perhaps sole trader status would be a possible way to address these issues of temporary worker or would limited company status be the only solution. The agency are content for the worker to go self employed and would offer a slightly higher rate to offset not having to administer NI contributions 

thanks for any info


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