Umbrella Companies - a definition Umbrella Companies - a definition
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  1. #1

    Nervous Newbie


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    Default Umbrella Companies - a definition

    Hello there ,
    Could anyone say what an umbrella company is from the End-Client or Agency point of view . ie if you say that you're an umbrella company how can that be proved ?

    Thanks , K

  2. #2

    Some things in Moderation

    cojak's Avatar
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    A good umbrella would be one that followed the FCSA Code of Compliance.

    You can find more details here: Codes of Compliance • Accredited Members • FCSA FCSA
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make myself look wise and well read."
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  3. #3

    Fingers like lightning


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    There is no legal definition, but this link may help.

  4. #4

    Double Godlike!

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    This has been written elsewhere, and may be germane to this thread as well...


    1. Use an FCSA member/compliant company
    2. Use one that charges a flat fee, not a percentage of day rate
    3. Use one that allows proper salary sacrifice for pension contributions (many only offer the legal minimum of around 5%)
    4. Use one that offers around 60% of gross take home: any more than that and they are cheating somewhere and it's your liability.
    5. Run away very quickly from any that offer loans, expenses, deferred payments or any other variation.
    6. Run away from any that don't offer an immediate, detailed breakdown - ideally a sample payslip - against your rate and tax position

    Lots of cowboys out there, so take care
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  5. #5

    Fingers like lightning


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    Just for the record, can I state that an umbrella company can still be compliant without accreditation - just saying
    Just means that a little more due diligence should happen.

  6. #6

    Some things in Moderation

    cojak's Avatar
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    It also shows that people can’t just turn around to their client/agency and say “I’m an Umbrella company now “...
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make myself look wise and well read."
    - Voltaire/Benjamin Franklin/Anne Frank...

  7. #7

    Should post faster

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    Quote Originally Posted by malvolio View Post
    This has been written elsewhere, and may be germane to this thread as well...


    1. Use an FCSA member/compliant company
    2. Use one that charges a flat fee, not a percentage of day rate
    3. Use one that allows proper salary sacrifice for pension contributions (many only offer the legal minimum of around 5%)
    4. Use one that offers around 60% of gross take home: any more than that and they are cheating somewhere and it's your liability.
    5. Run away very quickly from any that offer loans, expenses, deferred payments or any other variation.
    6. Run away from any that don't offer an immediate, detailed breakdown - ideally a sample payslip - against your rate and tax position

    Lots of cowboys out there, so take care
    Hi malvolio

    Agreed with most of the above.

    However, some compliant umbrellas offer the reimbursement of legitimate expenses too. For example, mileage under AMAPS is perfectly fine for non-SDC, or multi-site, workers.

    Thanks


    Zeeshan

  8. #8

    Double Godlike!

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    Quote Originally Posted by DolanContractorGroup View Post
    Hi malvolio

    Agreed with most of the above.

    However, some compliant umbrellas offer the reimbursement of legitimate expenses too. For example, mileage under AMAPS is perfectly fine for non-SDC, or multi-site, workers.

    Thanks


    Zeeshan
    Yes i know. But that is the exception; you shouldn't be advertising it as standard practice or including it in illustrations.
    Blog? What blog...?

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