READ ME before choosing your umbrella
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  1. #1

    Some things in Moderation

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    Default READ ME before choosing your umbrella

    Read this first before picking up the phone.

    Guidance (on) Providers of Tax Avoidance Schemes (POTAS)

    And read this as well 10 things you need to know about tax avoidance

    Be aware that by using a legitimate umbrella that will pay the expected amount of tax and NI, you will receive approximately 65% of your day rate.

    If you pay less than 35% tax (>65% take home) then I would imagine HMRC are NOT receiving PAYE amounts and will come after you for the gap.

    There are sanctions and fines that HMRC can impose on these dodgy providers, but I've never heard of any company being caught and I don't know anywhere where these penalties are published, and that's the main deterrent in my book.
    Last edited by cojak; 7th July 2017 at 09:47. Reason: Reflect new HMRC sanction on dodgy umbrellas

  2. #2

    TripleIronDad

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    If someone wanted to complain to HMRC, is there a phone number to call?
    I keep pushing forwards but they keep pushing me backwards. So I have new rules. 1. Don't feed the trolls you know they have no souls. 2. Don't respond to them they'll only post back back again. 3. Don't be their friend they'll only knife you in the back. I have new rules I count them.

  3. #3

    Some things in Moderation

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    Hmmm.. Good question - I'll have a look.

  4. #4

    More time posting than coding

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    Quote Originally Posted by cojak View Post
    Hmmm.. Good question - I'll have a look.
    Here you go https://www.gov.uk/government/organi.../tax-avoidance
    Just watching what I say

    We now offer Ltd too, so if you need a company that you can switch between Ltd & Umbrella, just shout!

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  5. #5

    TripleIronDad

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    Quote Originally Posted by lucycontractorumbrella View Post


    I just tried to call this. The conversation: -
    them: HMRC counter avoidance
    me : is this the right number to report a tax avoidance scheme?
    them : errr - might be. where did you get this number?
    me: internet
    them : errr - I will ask

    Someone else then came on the line and filled in a form which I was told would be passed onto a specialist investigation unit.

    I asked if there would be any feedback and was told that there would definitely not be. I then pointed out that myself, and many others on CUK, feel that HMRC do not do enough to tackle promoters. I was told that this was well beyond his pay grade.
    I keep pushing forwards but they keep pushing me backwards. So I have new rules. 1. Don't feed the trolls you know they have no souls. 2. Don't respond to them they'll only post back back again. 3. Don't be their friend they'll only knife you in the back. I have new rules I count them.

  6. #6

    More time posting than coding

    lucycontractorumbrella's Avatar
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    Quote Originally Posted by BrilloPad View Post
    I asked if there would be any feedback and was told that there would definitely not be. I then pointed out that myself, and many others on CUK, feel that HMRC do not do enough to tackle promoters. I was told that this was well beyond his pay grade.
    Maybe snail mail might be worth a go - apparently, they respond better to the old fashioned way of communicating

    HMRC Fraud Hotline
    Cardiff
    CF14 5ZN
    United Kingdom
    Just watching what I say

    We now offer Ltd too, so if you need a company that you can switch between Ltd & Umbrella, just shout!

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  7. #7

    Nervous Newbie


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    Default Take home thats too goo to be true

    Quote Originally Posted by cojak View Post
    Read this first before picking up the phone.

    Guidance (on) Providers of Tax Avoidance Schemes (POTAS)

    And read this as well 10 things you need to know about tax avoidance

    Be aware that by using a legitimate umbrella that will pay the expected amount of tax and NI, you will receive approximately 65% of your day rate.

    If you pay less than 35% tax (>65% take home) then I would imagine HMRC are NOT receiving PAYE amounts and will come after you for the gap.

    There are sanctions and fines that HMRC can impose on these dodgy providers, but I've never heard of any company being caught and I don't know anywhere where these penalties are published, and that's the main deterrent in my book.
    I agree entirely, this is an absolute time bomb for an awful lot of contractors who have been tempted by these schemes.

    If its too good to be true then I'm afraid that it is.

    The other thing to be aware of is that if you don't have a complete NI contribution record over a minimum of 30 years then you will have a nasty shock when you come to retire.....no full state pension

  8. #8

    More time posting than coding

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    Quote Originally Posted by Beacon Umbrella View Post
    The other thing to be aware of is that if you don't have a complete NI contribution record over a minimum of 30 years then you will have a nasty shock when you come to retire.....no full state pension
    That would be a very long time on the bench for a contractor either that or maybe it is time to find a permie role.
    Just watching what I say

    We now offer Ltd too, so if you need a company that you can switch between Ltd & Umbrella, just shout!

    Connect with me on LinkedIn

  9. #9

    Some things in Moderation

    cojak's Avatar
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    Quote Originally Posted by Beacon Umbrella View Post
    I agree entirely, this is an absolute time bomb for an awful lot of contractors who have been tempted by these schemes.
    And let's not forget those dodgy 'tax efficient' umbrellas either - they're caught too...

  10. #10

    Some things in Moderation

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    Default Due diligence and your part in it.

    For your due diligence look up the company in Companies House: https://www.gov.uk/get-information-about-a-company

    Find the names of the Directors and look them up, find out what other companies the have been associated with.

    Then go to the HMRC Scheme Enquiries Forum and do a search for a few of the companies associated with that Director/s (it will never be only one company).

    If you don't find anything in there - excellent. That is one more step (not the only one mind) that may indicate that they are a 'proper' umbrella.

    If you do find the names of those old companies popping up in a forum indicative of pain and misery of many years standing, however...

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