Umbrella company Rocket Paye says it’s been cloned
An umbrella company that was recently “highly commended” for its service to contractors is being impersonated by a copycat.
Rocket Paye Ltd (company number 1267706), alleges that the copycat is trying to take “advantage of our great reputation.”
The Stevenage-based umbrella, which won the commendation in November, last week accused the copycat of “trying to win business off of” its commercial back.
‘We’ll only ever email you from addresses ending rocketpaye.co.uk’
The copycat has made itself hard to spot by incorporating a name “as close to [ours] as you can possibly get,” Rocket Paye warned in a post.
The umbrella company alerted contractors and agencies that it only ever gets in touch using email addresses ending “rocketpaye.co.uk.”
Approached by ContractorUK to provide further details, Rocket Paye said it would not -- until it was finished “dealing” with the copycat.
‘Legal action’
“None of our clients or workers have…been contacted by…[the copycat].
“[But we’re] taking legal action to protect everyone involved,” Rocket Paye said.
A former victim of ‘umbrella company cloning’ -- a ruse that became prolific in 2022 -- worries that legal action alone won’t work.
‘Legal recourse won’t work if the umbrella’s clone has non-UK directors’
Lucy Smith of Clarity Umbrella, which attracted its own clone in April 2022, told ContractorUK:
“Cloning is not new to the umbrella contractor market. But unfortunately legal action is unlikely to provide a successful conclusion.
“That’s because [often with these copycats], the majority of their directors are outside the UK and, as such, out of legal jurisdiction.”
‘Take-home pay’
Umbrella company clones or copycats pose as a respected payroll business, copying their branding, website and largely, their name.
Typically, the copycat tries to mislead contractors and recruitment agencies, so the copycat can make some sort of financial gain.
The copycat may offer higher ‘take-home’ to workers, who hand over their details, reassured it recently won an award, for example.
Or it may try to get the agency partners of the umbrella it is impersonating to send their payments to a new bank account.
‘Copying documentation and branding’
Rockey Paye Ltd declined to go into details (in either its post or to ContractorUK) about the motivations of the copycat.
Yet SAW Consulting, a compliance advisory to umbrellas, suggests whoever’s targeting Rockey Paye probably won’t reinvent the wheel.
“The clone…[usually] uses documentation which it has copied from the real company’s documentation and branding.
“It uses the authentic-looking materials to communicate with agencies to instruct payment to a new account which it controls,” the advisory says.
‘Unlikely any contractors’ money is going to HMRC’
SAW Consulting’s Shelley Ankers-Wainwright says it’s not clear if the Rocket Paye copycat is onboarding contractors.
She told ContractorUK: “If real contractors are being taken in, and are now involved, it’s extremely unlikely any money of theirs is being passed onto HMRC.”
Although contractors can check their HMRC personal tax account (to see employer payroll submissions to HMRC), other parties should act too.
‘Awareness, plus agency bank checks’
“From previous experience [of being cloned], we can tell you it’s simply about ensuring your client base is aware,” says Clarity Umbrella.
“In addition as an umbrella company with a copycat in tow, ensure that the contractor recruitment agencies you work with have bank checks in place.”
“And any correspondence asking for bank account changes should be checked with you, the umbrella, first. Or the agencies could find themselves very much out-of-pocket.”
‘Communication’
Rocket Paye, where Alex Hough is managing director and John Bounds is sales director, said: “Our landline [phone] number…is 01992 929 170.
“Any other [number or] form of communication, stating that they are from Rocket Paye [are not to be trusted].”