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  1. #1

    Nervous Newbie


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    Default umbrella company advice

    Hi, I work for a nursing agency for different hospitals in my area.
    I was asked if I wanted to join an umbrella company called elite managememt and consultancy.
    The take home is 84%, they make a minimal wage payment and the rest paid as capital investment without tax due on it.
    Has anyone had any experience with this umbrella?
    I couldn't find many reviews or info, there is only a topic about it on this forum.
    Thank you

  2. #2

    Prof Cunning @ Oxford Uni

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    Quote Originally Posted by mtro27 View Post
    Hi, I work for a nursing agency for different hospitals in my area.
    I was asked if I wanted to join an umbrella company called elite managememt and consultancy.
    The take home is 84%, they make a minimal wage payment and the rest paid as capital investment without tax due on it.
    Has anyone had any experience with this umbrella?
    I couldn't find many reviews or info, there is only a topic about it on this forum.
    Thank you
    Please do not use them. Anything saying you are only paying 16% in tax, NI and fees is doing something that HMRC will not take kindly to.
    I'm perfect, in a very specific and limited way.
    Hands... out infractions
    Face... the music
    Space... between the ears

  3. #3

    Contractor Among Contractors

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    Quote Originally Posted by WTFH View Post
    Please do not use them. Anything saying you are only paying 16% in tax, NI and fees is doing something that HMRC will not take kindly to.
    Also, please advise your friends and colleagues that such agencies are VERY bad news. Avoid.
    ---

    Former member of IPSE.


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    Many a mickle makes a muckle.

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  4. #4

    bored now

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    Quote Originally Posted by mtro27 View Post
    Hi, I work for a nursing agency for different hospitals in my area.
    I was asked if I wanted to join an umbrella company called elite managememt and consultancy.
    The take home is 84%, they make a minimal wage payment and the rest paid as capital investment without tax due on it.
    Has anyone had any experience with this umbrella?
    I couldn't find many reviews or info, there is only a topic about it on this forum.
    Thank you
    Run a mile from them....

    This forum will explain why https://www.contractoruk.com/forums/...eme-enquiries/ .

    even if the choice is this contract or unemployment for your longer term (financial and mental) well being unemployment would be the far saner option
    merely at clientco for the entertainment

  5. #5

    Nervous Newbie


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    Thanks for the advice, I thought there may be something dodgy with it. Anyway, where i work almost every single contractor within the same agency use this umbrella. They haven't reported any problem so far.

    I also asked tax advisors directly, but they are not able to give me an answer.
    Just advised to walk away.
    Last edited by mtro27; 17th August 2020 at 07:30.

  6. #6

    Some things in Moderation

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    Agencies receive a massive commission for pushing people into these companies.

    They are in it for themselves, not for the love of you, believe me.
    "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...

  7. #7

    bored now

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    Quote Originally Posted by mtro27 View Post
    Thanks for the advice, I thought there may be something dodgy with it. Anyway, where i work almost every single contractor within the same agency use this umbrella. They haven't reported any problem so far.

    I also asked hmrc directly, but they are not able to give me an answer.
    Just advised to walk away.
    HMRC are slow at picking these things up as even at the best of times they only notice issues when they see the final figures at the end of the year - which means it can take a very long time.

    And I suspect the kickbacks involved are giving the agency a very nice profit margin...
    merely at clientco for the entertainment

  8. #8

    Fingers like lightning


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    Quote Originally Posted by cojak View Post
    They are in it for themselves, not for the love of you, believe me.
    HMRC need to set up to the mark and start prosecuting those agencies for recommending these schemes. I thnk we need to see a big court case that highlights this sooner or later. I have spoken to a couple of agencies who are simply happy to turn a blind eye when the contractor insists on using them. I have to say the ones I have come across are all in the healthcare industry. If only it got back to the NHS as debt liability at some point!

  9. #9

    Still gathering requirements...


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    Default Dishonest Assistance Claims Against Agencies

    Quote Originally Posted by lucyclarityumbrella View Post
    HMRC need to set up to the mark and start prosecuting those agencies for recommending these schemes. I thnk we need to see a big court case that highlights this sooner or later. I have spoken to a couple of agencies who are simply happy to turn a blind eye when the contractor insists on using them. I have to say the ones I have come across are all in the healthcare industry. If only it got back to the NHS as debt liability at some point!
    If a liquidator found out that agencies had repeatedly referred contractors to this sort of avoidance scheme, he/she could sue the agencies for the tax losses on the basis that, to generate a higher than normal commission, they'd knowingly turned a blind eye to the tax avoidance taking place

    And it's easier to pursue one agency than a hundred contractors ………...

  10. #10

    Contractor Among Contractors


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    Quote Originally Posted by Ian Richardson GT Leeds View Post
    If a liquidator found out that agencies had repeatedly referred contractors to this sort of avoidance scheme, he/she could sue the agencies for the tax losses on the basis that, to generate a higher than normal commission, they'd knowingly turned a blind eye to the tax avoidance taking place

    And it's easier to pursue one agency than a hundred contractors ………...
    To your knowledge, has this ever happened?

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