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Umbrella pretending to be UK based?

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    Umbrella pretending to be UK based?

    Dear all,

    I was literally in the process of signing a contract with an Umbrella company today, when i noticed the 'name of employer' is totally different to that of the supposed Umbrella company, plus the contract states they are based offshore in St Helier, rather than mainland UK as all their other documentation/website suggests.

    They are NOT offering me 90% of my income, just a bog standard umbrella service.

    SO, ive instantly backed off.

    Any experience or advice on this? perhaps it normal?

    Must admit, i had visions that they will deduct tax from me at UK rates, which they'll then retain for themselves, being an offshore company...

    Am i unnecessarily paranoid?

    Charcoal76

    #2
    Is the agency you doing the work through OK with where the umbrella company is based?

    Personally if I was going to do more than one contract I would set up a limited.
    "You’re just a bad memory who doesn’t know when to go away" JR

    Comment


      #3
      Originally posted by Charcoal76 View Post
      Dear all,

      I was literally in the process of signing a contract with an Umbrella company today, when i noticed the 'name of employer' is totally different to that of the supposed Umbrella company, plus the contract states they are based offshore in St Helier, rather than mainland UK as all their other documentation/website suggests.

      They are NOT offering me 90% of my income, just a bog standard umbrella service.

      SO, ive instantly backed off.

      Any experience or advice on this? perhaps it normal?

      Must admit, i had visions that they will deduct tax from me at UK rates, which they'll then retain for themselves, being an offshore company...

      Am i unnecessarily paranoid?

      Charcoal76

      I don't know if you're being unnecessarily paranoid - it would raise a question for me too. There are plenty of reputable UK based umbrellas, so if in doubt, go with one of them.

      Comment


        #4
        an umbrella company wants to take my client! | AccountingWEB

        It could be a mechanism for pocketing the Employer's NI.

        Comment


          #5
          If the umbrella company is based offshore and using a UK office as a front then the Offshore Intermediaries Legislation will apply https://www.gov.uk/government/public...intermediaries. Did you find the company or were they recommended to you by the agency?
          Connect with me on LinkedIn

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            #6
            Originally posted by mudskipper View Post
            an umbrella company wants to take my client! | AccountingWEB

            It could be a mechanism for pocketing the Employer's NI.
            +1. That would be my immediate suspicion...

            When it comes to umbrella's my only recommendation is contractor umbrella. Simply because the boss posts here (as can be seen in the post above) and if anything goes wrong it will be easily sorted...
            merely at clientco for the entertainment

            Comment


              #7
              Originally posted by eek View Post
              +1. That would be my immediate suspicion...

              When it comes to umbrella's my only recommendation is contractor umbrella. Simply because the boss posts here (as can be seen in the post above) and if anything goes wrong it will be easily sorted...
              Thanks Eek
              Connect with me on LinkedIn

              Follow us on Twitter.

              ContractorUK Best Forum Advisor 2015

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                #8
                Originally posted by Charcoal76 View Post
                Dear all,

                I was literally in the process of signing a contract with an Umbrella company today, when i noticed the 'name of employer' is totally different to that of the supposed Umbrella company, plus the contract states they are based offshore in St Helier, rather than mainland UK as all their other documentation/website suggests.

                They are NOT offering me 90% of my income, just a bog standard umbrella service.

                SO, ive instantly backed off.

                Any experience or advice on this? perhaps it normal?

                Must admit, i had visions that they will deduct tax from me at UK rates, which they'll then retain for themselves, being an offshore company...

                Am i unnecessarily paranoid?

                Charcoal76
                We wouldn't have said so. An umbrella will have a very large part to play in the heath of your finances so spending some time to find a reputable company is a very good idea. You only have to look at this thread to see how much can be lost in the event a brolly goes under.

                The fact this company is registered in Jersey would make it considerably more difficult for you to take any legal action in the event things went awry.

                As others have said with so many reputable and long standing UK registered brollies around we really can't see any advantage for you to get in to business with an offshore entity.
                The only debt collection & credit control company recommended by Contractor UK.

                Read our articles on ContractorUK here and get in touch here.

                Comment


                  #9
                  I agree it's not paranoia, there are plenty of examples of "scheme" providers that call themselves Umbrellas and as people have said if it goes wrong then they definitely are out to get you.

                  When it comes to who gets their hands on your contract rate and who pays your Tax and NI play it safe.

                  Comment


                    #10
                    Originally posted by LisaContractorUmbrella View Post
                    If the umbrella company is based offshore and using a UK office as a front then the Offshore Intermediaries Legislation will apply https://www.gov.uk/government/public...intermediaries. Did you find the company or were they recommended to you by the agency?
                    Yup! Being linked with an offshore company puts you way up the queue for a snap inspection if nothing else, even if you are PAYE.
                    Last edited by Taita; 3 June 2015, 16:37.

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