Brainstorming: Umbrella - furlough situation

[anim]

This is more of a accounting question, so better here than general.

This is more of a brainstorming - I am not in this situation now.

We all know a lot of people in umbrellas lost their income during the last 6-7 months. They have not been on furlough even though the umbrella could have put them on one. Brolly simply can not be bothered.

Looking forward, is there anything that can be done to mitigate this?

Negotiated clause in the brolly contract where if the work is canned mid contract and there is a furlough scheme by the government they are obliged to put you in one. How likely is this?

or

Keep being employee of your old LTD on £1/month as a second job. Although it will not work I guess because it is payroll based and it is brolly's payroll which will give you £2500/m. Can this be fudged?

or

Same as above but you loan your old LTD up to £3100 every month and take a £3100 salary. I guess there is a huge tax/NIN hit there. Right?

What do you think?

[eek]

Couldn't be bothered wouldn't be the appropriate phrase. Unable to identify a means of doing so that didn't eat into their profit margins would be a better one.

And umbrella firms do not have vast profit margins (which is where a lot of issues stem from)

[GhostofTarbera]

Brainstorming: Umbrella - furlough situation

This is more of a accounting question, so better here than general.

This is more of a brainstorming - I am not in this situation now.

We all know a lot of people in umbrellas lost their income during the last 6-7 months. They have not been on furlough even though the umbrella could have put them on one. Brolly simply can not be bothered.

Looking forward, is there anything that can be done to mitigate this?

Negotiated clause in the brolly contract where if the work is canned mid contract and there is a furlough scheme by the government they are obliged to put you in one. How likely is this?

or

Keep being employee of your old LTD on £1/month as a second job. Although it will not work I guess because it is payroll based and it is brolly's payroll which will give you £2500/m. Can this be fudged?

or

Same as above but you loan your old LTD up to £3100 every month and take a £3100 salary. I guess there is a huge tax/NIN hit there. Right?

What do you think?

Umbrellas is a numbers game, they probably make £5 a week profit on you

So zero chance


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[anim]

Before the IR35 went in the drain for this year, I was offered "the" preferred umbrella at £30/week. No choice.
Granted there are also ones at £20/w. So 90-135 month. Hardly a bad profit for doing 1 hour per month (even if that) to produce payroll slip.
During furlough they can not take fees (or can they??) but it is not their money one will get.

Anyway so far you are right: no chance. Hence the topic.

[eek]

Before the IR35 went in the drain for this year, I was offered "the" preferred umbrella at £30/week. No choice.
Granted there are also ones at £20/w. So 90-135 month. Hardly a bad profit for doing 1 hour per month (even if that) to produce payroll slip.
During furlough they can not take fees (or can they??) but it is not their money one will get.

Anyway so far you are right: no chance. Hence the topic.

Umbrellas do more than just payroll....

[anim]

Umbrellas do more than just payroll....

Could be - never been with one. What more?
When I asked what do I pay for and it was - eeeehhhm, onboarding, payroll.
Mind you onboarding is one off.
So what else?
Or to put it bluntly - how many hours do they spend on me per month?

[eek]

Could be - never been with one. What more?
When I asked what do I pay for and it was - eeeehhhm, onboarding, payroll.
Mind you onboarding is one off.
So what else?
Or to put it bluntly - how many hours do they spend on me per month?

Done properly, zero as it should be automated away.

[anim]

Lets assume they really do stuff.
What is the problem to put you on furlough and to set up some sort of service for which you pay fee?
Something like 'training for what the future holds' course.
I dont see how is this illegal.

[anim]

Done properly, zero as it should be automated away.

Well?

[eek]

Lets assume they really do stuff.
What is the problem to put you on furlough and to set up some sort of service for which you pay fee?
Something like 'training for what the future holds' course.
I dont see how is this illegal.

Do you understand how the furlough scheme worked?

Do you understand how an umbrella actually works? For instance who actually pays the fee?

And why are you using the word illegal?