Umbrella Companies

[lucyclarityumbrella]

Wouldn't know they won't work with us

[cojak]

I’ve vetted them (at least they aren’t promising anything dodgy) so provided they engage as professionally as you do Lucy they are welcome.

[lucyclarityumbrella]

I had better behave and live up to that rep then

[moggy]

Hi everyone,

Sorry, It's a bit lengthy.

But...

I'm currently doing some contract work and am looking in to the options that Umbrella Cos provide.

I have some background in payroll and finance so i know that certain schemes run by certain umbrellas should be avoided.

This said, I have been recommended two umbrella cos, Target Umbrella and Maxipay.


if anyone has worked with these companies before, feel free to correct me if i'm wrong but...

Target seem to operate a loan scheme. Where the loans are ultimately never repaid.

Maxipay seem to rely on a clause in their contract that shifts the responsibilities of the "fee payer" away from them and on to my own Ltd Company. Meaning that my Ltd Co would receive 95% of my rate (5% being Maxipay's fee) and my Ltd Co would be responsible for Tax and NI deductions.

I believe that neither scheme would hold up and both would leave me at risk if/when the HMRC came knocking.

My Questions:
Am i being overly paranoid here? I know a lot of people working with both of these companies, so am i missing something with these schemes? are they actually OK?

and if these schemes aren't ok...
Why are big agencies like Hays and Reed allowing their contractors to use these Umbrella Companies? especially since they can also be found liable for any unpaid PAYE & NI if investigated?
Surely the agencies should be trying to avoid putting themselves and their contractors at risk and not, as it seems, encouraging it?

Any thought and opinions would be appreciated.

Thank you.

Were these two companies recommended by an agency? if so which one?