IR35 post April 2020: Choosing a legitimate Umbrella IR35 post April 2020: Choosing a legitimate Umbrella - Page 7
Page 7 of 7 FirstFirst ... 567
Posts 61 to 66 of 66
  1. #61

    Some things in Moderation

    cojak's Avatar
    Join Date
    Jul 2005
    Location
    Look to your right...
    Posts
    20,687

    Default

    Quote Originally Posted by DolanContractorGroup View Post
    Hi cojak,

    Most compliant umbrellas use 'NMW and profit share/bonus' type wording in the employment contracts, so some of your terms may come up.


    Thanks

    Zeeshan
    Thanks for point this out Zeeshan.
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
    - Voltaire/Benjamin Franklin/Anne Frank...

  2. #62

    bored now

    eek's Avatar
    Join Date
    Jun 2010
    Location
    😂
    Posts
    25,837

    Default

    Quote Originally Posted by DolanContractorGroup View Post
    Hi cojak,

    Most compliant umbrellas use 'NMW and profit share/bonus' type wording in the employment contracts, so some of your terms may come up.


    Thanks

    Zeeshan
    Can you look at https://www.contractoruk.com/forums/...ml#post2734393 and tell us what bits are there that you as an legitimate umbrella company would and would not use.

    Imagine there are scam "umbrella" companies who are trying to look very much like a proper PAYE complaint ones (even to the point that the difference in end pay is not an obvious tell) - they pay 70% say and are pocketing 20% for themselves.

    What words in the contract and marketing should people be looking for to avoid falling into a trap as FCSA are as much use as a chocolate teapot here...
    Last edited by eek; 25th February 2020 at 14:41.
    merely at clientco for the entertainment

  3. #63

    Should post faster

    DolanContractorGroup's Avatar
    Join Date
    Mar 2018
    Location
    Tring
    Posts
    165

    Default

    Quote Originally Posted by eek View Post
    Can you look at https://www.contractoruk.com/forums/...ml#post2734393 and tell us what bits are there that you as an legitimate umbrella company would and would not use.

    Imagine there are scam "umbrella" companies who are trying to look very much like a proper PAYE complaint ones (even to the point that the difference in end pay is not an obvious tell) - they pay 70% say and are pocketing 20% for themselves.

    What words in the contract and marketing should people be looking for to avoid falling into a trap as FCSA are as much use as a chocolate teapot here...
    Hi eek,

    From the post you linked, both of the top points are worded in a way that would imply something fishy is going on.

    It could be argued that NMW is indeed a "salary portion" (as both NMW and bonus make up the salary), however, tax and NI would never JUST be deducted on the NMW portion. Both NMW and bonus are subject to the deductions. They then mention expenses, and 'tax free element'. Again, expenses are paid from taxable income and essentially are 'tax free'.

    I believe the issue is that the wording is carefully chosen to mask any outward appearance of tax evasion. Unfortunately, contractors will (and many do!) fall for this because they won't be looking properly at the language used.

    Also, a 24 page umbrella employment contract? What are they putting in there to make it that long?

    I think cojak summed it up well with the terms she used, but contractors should be aware that 'NMW' and 'bonus' are found in compliant models too.

    EDIT: And I'm not saying this because we're FCSA members, but going by the information FCSA members put out, and what others put out, I can see why agencies and clients choose to have FCSA only PSLs. We just went through our annual audit, conducted by an international auditor, and it was very thorough and they even recommended some changes on things we were already more than compliant on!

    Thanks


    Zeeshan
    Last edited by DolanContractorGroup; 25th February 2020 at 15:47.

  4. #64

    Some things in Moderation

    cojak's Avatar
    Join Date
    Jul 2005
    Location
    Look to your right...
    Posts
    20,687

    Default One more thing...

    Go to the London Gazette and search for the name of the parent company that you find in the contract.

    The Gazette | Official Public Record

    If they turn up there with a Winding Up Order, stop all contact with them and find another umbrella company.

    Also look up the name in Companies House and look at the 'Insolvency' tab.

    Trust me, you'll thank us later...
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
    - Voltaire/Benjamin Franklin/Anne Frank...

  5. #65

    bored now

    eek's Avatar
    Join Date
    Jun 2010
    Location
    😂
    Posts
    25,837

    Default

    Quote Originally Posted by cojak View Post
    Go to the London Gazette and search for the name of the parent company that you find in the contract.

    The Gazette | Official Public Record

    If they turn up there with a Winding Up Order, stop all contact with them and find another umbrella company.

    Also look up the name in Companies House and look at the 'Insolvency' tab.

    Trust me, you'll thank us later...
    Not just go now - you need to continually check that your umbrella is not listed there.
    merely at clientco for the entertainment

  6. #66

    Some things in Moderation

    cojak's Avatar
    Join Date
    Jul 2005
    Location
    Look to your right...
    Posts
    20,687

    Default

    Quote Originally Posted by eek View Post
    Not just go now - you need to continually check that your umbrella is not listed there.
    True.

    And if you do discover that they have a winding up order against them, you need to immediately terminate your contract with them and find yourself a decent umbrella - and speak to the Citizen's Advice Bureau for further help - this is out of our league...
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
    - Voltaire/Benjamin Franklin/Anne Frank...

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •