Self employed or PAYE ?

[johnny]

I've recently started working for an agency and have the choice of going self employed or PAYE . Can anyone recommend which is best and what are the pitfalls . Thanks

[buildersmate]

Nice idea, Doc, which is no longer possible. Too many people were doing it.
I think you need to read this about Managed Service Companies.
http://www.hmrc.gov.uk/employment-status/msc.h tm
In the situation you describe I think you will find out that you have no choice but to be PAYE. I will be surprised if your Agency is not within the scope of the definition of an MSC.

[Twenty20]

As buildersmate says, I dont think there's a choice these days, depending on your circumstances you either fit into one group or the other.