There is a common misconception that umbrella companies are raking it in. In reality, the only income that umbrella companies generate is the margin they deduct in exchange for the administrative payroll service they provide. Find out more about how umbrella companies make money in this article. What is an …
Sadly, the threat of umbrella company cloning doesn’t appear to have faded away. Instead, it remains a severe danger to the industry. If you work for an umbrella company, you must understand what umbrella company cloning is to protect your own business. But it isn’t just umbrella companies that need …
Umbrella company cloning remains a serious threat to the sector in 2022 » Read the full story
There is no hiding from the fact that changes to IR35 (off-payroll) have resulted in more unscrupulous tax avoidance schemes targetting workers who require umbrella payroll (PAYE). It’s disappointing to see. While most umbrellas are UK based and fully compliant with HMRC’s rules and regulations, some are preying on vulnerable …
The government has unveiled a new open consultation, and they would like you to help. Whether you work through an umbrella company, possibly as a contractor or freelancer, or you represent a recruitment agency or end-hirer, now is your time to share your thoughts on umbrella companies to help the …
How Can You Help The Government Regulate The Umbrella Company Sector? » Read the full story
Unusually, the government has opened a consultation to “call for evidence to ensure it has an up-to-date and well-informed view of how the umbrella company market operates”. Is this a sign that the umbrella company is on the verge of being regulated by the government? Keep reading, and we’ll summarise …
Is The Government On The Verge Of Regulating Umbrella Companies? » Read the full story
Sadly, it appears that a well-known umbrella company has filed for liquidation – leaving hundreds of contractors potentially without pay. This is a terrible scenario, and our deepest sympathies are with all the affected employees. We sincerely hope that all outstanding payments are made and no temporary worker finds themselves …
Helpful information if you are unpaid by an umbrella company » Read the full story
Published on Thursday 18th November 2021, the government has released some online guidance to help agency workers and contractors who have used the services of umbrella companies. The guidance involves the user answering a series of questions. Once the final question has been answered, a screen appears with guidance relating …
In a recent article posted on Contractor UK, HMRC defends itself for exclusively referring contractors to umbrella companies that have an accreditation from the Freelancer and Contractor Services Association (FCSA) and claim it’s because of a supplier. From our perspective – surely this is proof that HMRC values the FCSA? …
The government may not actively endorse umbrella companies, but they have recently released some helpful guidance online for temporary workers, recruitment agencies and businesses that engage with contractors and freelancers. The latest guidance (released in October 2021) is written for recruitment agencies and firms that use temporary workers and is …
The FCSA, the UK’s leading professional body committed to ensuring the supply chain of temporary workers is compliant with UK tax law, has updated its Charter in response to concerns raised by third parties. Rather than approach the FCSA in a calm and collected manner, some stakeholders were quick to …
In a recent article published by the FCSA, a warning has been issued to recruitment agencies that refer candidates to umbrella companies. It’s become apparent that criminals are pretending to represent well-respected umbrellas under fake companies (with almost identical names) in an attempt to trick agencies into sending payments to …
One common question that some temporary workers have regarding umbrella companies is whether or not there is a tie-in period with their services. We’ll answer this question below. However, in short – no. There is not a tie-in period with an umbrella company, assuming they’re compliant. Keep reading to find …
Is there a tie in period with an umbrella company? » Read the full story
Professional Passport, payroll intermediary compliance specialists, has released a thorough report on umbrella companies. In the 38-page document, Crawford Temple, CEO at Professional Passport, outlines the industry’s legislation for 40 years. He then provides a series of suggestions to HMRC on how to regulate umbrella companies and stop non-compliance. It’s …
The Recruitment & Employment Confederation (REC) has suggested that HMRC set up a dedicated umbrella company hotline to report non-compliance, unethical behaviour, and malpractice. What a jolly good idea! Keep reading and find out more. Non-compliant umbrella companies must be reported If you ever come across a non-compliant umbrella company, …
Shock! Umbrella companies are in the news again. It’s mightily frustrating to read that some umbrellas out there completely disregard the rules and put their employees at risk of non-compliance. Now seems the perfect opportunity to reassure our readers that most UK-based umbrella companies are compliant and provide a pretty …
The truth about umbrella companies in 2021 » Read the full story
We’re grateful to have some friends within the umbrella company marketplace who are well-positioned to share valuable experiences with our readers. We’re surprised to hear the number of contractors who complain to umbrella companies about their take-home pay and how other umbrella companies are quoting them more. Some temporary workers …
Greedy contractors could be fueling tax avoidance schemes » Read the full story
