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  1. #31

    More time posting than coding

    lucycontractorumbrella's Avatar
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    Quote Originally Posted by kristen330 View Post
    "Umbrella companies are not covered by the above legislation, and as such we cannot look into the issue of them deducting £150 per week. However, it may help if I provide you with some background on how umbrella companies operate. If you are employed by an umbrella company, any money paid to them by an employment business becomes the umbrella company’s income. From that they deduct any statutory deduction, such as employers NI and the Apprenticeship Levy. The remainder is then treated as your income, from which statutory deductions are made as well as any fee that they charge for processing pay."
    I'm impressed that BIS actually seem to have an understanding of how an umbrella company operates, it has taken some years. I think the devil will be in the detail of the contract you have with them as to how it is structured, and at that point I think it would be a legal matetr which could cost you a fair whack
    Just watching what I say

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  2. #32

    Fingers like lightning

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    Quote Originally Posted by kristen330 View Post
    You are lucky. Also this is an Allen lane thing - not the fault of the umbrella company. Allen lane give the money (your salary) to the umbrella company, and the umbrella company only can only pay what they have. How it works is allen lane give a pot of money to first and they pay you from that. What seems to have happened here is that you queried it, first umbrella decided they didn't want to be part of allen lane's dodgy scheme anymore and partake in their scam, and they told allen lane to either stop the practice or find another umbrella company. Allen lane seem to be the ones who have backed down and are now not taking their £150/wk cut, so well done. I hope the government investigates these guys. What they are doing is really bad.
    The Govt would never do anything - its a contract issue at best i'd say.

    The best thing for the OP do is ensure everyone knows how the umbrella act/ do business - and leave them ASAP once funds are returned.
    I would also speak with the client and let them know what sort of agency they are dealing with.

    I know quite a few on here feel that all agencies are bad, that's not my opinion, and i would advise getting close to some decent ones and working closer with them rather than having to deal with ones who operate with hidden margins or underhand tactics.* That is is the agency are party to this as you say.

  3. #33

    Still gathering requirements...


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    Quote Originally Posted by force11 View Post
    Please can you help with some advice. I am working for an agency called Allen Lane who forced me to work through an umbrella company called First Umbrella. First Umbrella is charging me an extra £30 a day on top of their normal margin which they are paying back to Allen Lane. So basically I am paying Allen Lane £150 a week out of my earnings.

    I spoke to another umbrella company who said this is actually illegal as the Conduct of Employment Agencies regulations say you cant charge a contractor. Please can someone confirm whether this is correct? Thank you.
    It looks like the agency has closed their google page to censor the reviews. Talk about dodgy.

    Just in case anyone comes across this thread and is thinking of using them, don't! What kind of company would threaten reviewers with legal action and then have a tantrum and shut down their google page so people cannot read reviews about them? Pathetic poor excuse of a recruitment agency.

    If you type in google maps "len lane king street", you should still be able to see the original reviews. Not sure how long before google deletes them. The agency changed their address on google maps and their name and closed their company page down to censor the reviews.

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