Differences Between Umbrella Companies

[JC80]

Hi everyone,

I'm new to these boards and indeed new to contracting, start my first contract next Monday. My question is do you get the same net pay whichever umbrella company you go through as they all have to use the same tax laws or can you claim more expenses with some umbrella companies.

Is the only difference the fees charged?

I've been told to avoid Parasol, which I think I would anyway because of their fees. A couple of people have recommended Ice Blue Consulting to me. Do any of you use them? I've been speaking to them and they appear ok to me, just wondered if any of you lot had any experience of them, your thoughts please.

I used to think a company with a dispensation was better but partly due to this site (thanks!) I now know thats not the case.

Any other advice regarding umbrella companies would be appreciated.

Thanks

Justin

[NotAllThere]

The differences are: financial stability, fees, service and, perhaps, the handling of holiday pay.

[BrilloPad]

I use montpelier.

[Torran]

I've been told to avoid Parasol, which I think I would anyway because of their fees.

strange you pick Parasol to avoid as I would say they are one of the more reliable, proven ones out there. The fees are feck all in the grand scheme of things.

I would be interested to hear how they compare with any others cost wise that can offer the same service and reliability.

[JC80]

Torran - Been told that they are not reliable at all and their fees are also the highest.

Notallthere - interesting point about holiday. I have noticed from some of my quotes that some companies (including parasol) use "rolled up holiday pay" which is actually illegal. How do I stand as a contractor/felxible employee of an umbrella company that is acting illegally? The only 2 companies I have found that don't use rolled up holiday pay are Ice Blue Consulting and Contractor Umbrella. Maybe LisaContractorUmbrella could add something to this.

Justin

[LisaContractorUmbrella]

Torran - Been told that they are not reliable at all and their fees are also the highest.

Notallthere - interesting point about holiday. I have noticed from some of my quotes that some companies (including parasol) use "rolled up holiday pay" which is actually illegal. How do I stand as a contractor/felxible employee of an umbrella company that is acting illegally? The only 2 companies I have found that don't use rolled up holiday pay are Ice Blue Consulting and Contractor Umbrella. Maybe LisaContractorUmbrella could add something to this.

Justin

Hi Justin

Happy to help Taken from the DTI website (updated this month) -

" Following a European Court of Justice (ECJ) judgment on 16 March 2006 and more recent judgments in UK courts, (1) Rolled-Up Holiday Pay (RHP) is considered unlawful and payment for statutory annual leave should be made at the time when leave is taken"

There is case law to support this statement which is why we deal with holiday pay in the way we do. We had discussions with both the DTI and Brussells before this decision was taken to ensure we had it right.

[NotAllThere]

I would guess most umbrella employees would want RHP, as it lessens their exposure to the brolly going belly-up. Regarding the unlawfulness (not illegality) - who's going to make the complaint that gets the brolly prosecuted?

[THEPUMA]

Try www.umbrellasupermarket.com

[JC80]

I would guess most umbrella employees would want RHP, as it lessens their exposure to the brolly going belly-up. Regarding the unlawfulness (not illegality) - who's going to make the complaint that gets the brolly prosecuted?

Yeah I suppose RHP is better but it just makes me stop and think that if a company is blatantly willing to act in an unlawful way then how can they be completely trusted and what else are they doing thats "dodgy"?

Maybe it's me worrying too much about being a first time contractor but Im one of those people that has always done things by the book

[TheFaQQer]

Try www.thissiteisnotworthvisiting .com

You can't link there from here