Should umbrella companies be regulated by the FCA? Should umbrella companies be regulated by the FCA? - Page 2

View Poll Results: Should umbrellas be FCA Regulated?

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  • yes

    5 50.00%
  • no

    3 30.00%
  • only on alternate Thursdays

    2 20.00%
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Posts 11 to 12 of 12
  1. #11

    Super poster


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    Dec 2014
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    OK. I've not had the opportunity (and I'm not sure I want it) of auditing payslips from a range of umbrellas and for the moment at least I'm prepared to accept that greater knowledge you have in this area.

    We are I think seeing rogue umbrellas being pushed more and more to the fringes.

    Those who offer absurdly high take home rates through some form of reclassifying income as something else (usually a loan) are now being called out more often. This is however being done by individuals and advisers and NOT - for reasons I do not understand - by all those organisations in this space who claim some form of accreditation.

    There is understandably some trepidation about naming and shaming because this comes with a risk of being sued.

    However, HMRC is the great conundrum here. They will name and shame an individual who owes £25k in tax, but will not do the same for a dodgy umbrella who could happily walk away with many times that amount. Why not?

    We do see a lot of what I would describe as sharp practice.

    We see gross daily rates being divided into pay, expenses, participation in reward/discount schemes, pension contributions, etc often without any rhyme or reason. I suspect that conversations with those who believe the rate an umbrella quotes and the reality in their first pay check are "interesting".

    Whilst I understand that every umbrella wants a competitive advantage over the others, achieving this via slight of hand or dodgy arithmetic is surely to heaven a short sighted strategy?

    There is however no appetite with the umbrellas or those accrediting them, to have a standard template that they can all use and which allows direct comparisons. I'm not holding my breath that we will ever achieve that either.
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    (No, me neither).

  2. #12

    Fingers like lightning


    Join Date
    Feb 2013
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    Ipswich, Suffolk
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    615

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    Quote Originally Posted by webberg View Post
    There is however no appetite with the umbrellas or those accrediting them, to have a standard template that they can all use and which allows direct comparisons. I'm not holding my breath that we will ever achieve that either.
    Completely agree, a standard template would work in everyone's interests; HMRC, the contractors and the umbrella (cutting legal costs, setting very clear guidelines etc) but HMRC would need to agree it and there is no likelihood of that happening anytime soon! The it is down for the umbrella company to make their USP based on service alone which is what it should have been all along!

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