legal umbrella companies

Hi there, Does anyone know what the legalities of working through an umbrella company are? Are there any clauses that should or should not be in my contract that would put me in an uncertain position if it came under investigation?

Prosperity4 claim to be the only legal umbrella company - surely this can't be true??

Hi Mushroom345,

An umbrella company is responsible for raising invoices on your behalf and for making payments to you with the appropriate deductions for tax and national insurance according to Inland Revenue guidelines. They will also process those expenses which are allowable by the Inland Revenue. There is no such thing as a 'legal' umbrella company as all provide the same service in the same way - perhaps you could ask them to clarify this for you.

Based on comments elsewhere on these boards, do not believe Prosperity4's publicity - their legality is not in doubt, but their advertising approach is decidedly suspect. It's up to you if you think that advertising reflects a company's approach to business

[saptastic]

I found this posting on Google with a touch of nostalgia.

P4 were the only 'legal' company at the time. :-) Seemingly their advertising campaign never paid long term dividends as I discovered last year.

Found a useful list of umbrella companies and have just signed up to planit they seem to be pretty efficient thus far.

[original PM]

try googling for umbrella supermarket

seem to have a pretty comprehensive list of brollies

their forum is biscuits though!