Am I properly employed....

[robin]

if I work through an umbrella company?

I am sorting out a mortgage at the moment and working through an umbrella company I have always considered myself employed as I am 'employed' by my umbrella but then I've had other people question that saying 'you are but your kind of not as you don't actually 'work' for them and do temporary assignments through them'.

So I'm confused a bit now, I know I'm not self employed as I don't have a Ltd so am I therefore 'employed'?

For the umbrella people out there who have had to declare their income/employment what do you say?

[MrRobin]

Legally speaking and for tax purposes you are employed by the umbrella company.

But from a risk / lender's point of view, you are probably seen as self employed since your 'employer' is not obliged to pay you when you're off or find you more work when one role dries up etc.

[pmeswani]

if I work through an umbrella company?

I am sorting out a mortgage at the moment and working through an umbrella company I have always considered myself employed as I am 'employed' by my umbrella but then I've had other people question that saying 'you are but your kind of not as you don't actually 'work' for them and do temporary assignments through them'.

So I'm confused a bit now, I know I'm not self employed as I don't have a Ltd so am I therefore 'employed'?

For the umbrella people out there who have had to declare their income/employment what do you say?

You are employed by the Umbrella for the purpose of Tax. You are not entitled to the same benefits and perks as a regular employee of the Umbrella Company. Therefore you are not a regular employee of the Umbrella Company.

[robin]

Therefore you are not a regular employee of the Umbrella Company.

So what am I then when I get asked 'employed' or self employed' think the only other option were 'unemployed' and something like 'homemaker!!'

[pmeswani]

So what am I then when I get asked 'employed' or self employed' think the only other option were 'unemployed' and something like 'homemaker!!'

The answer to your question has already been addressed by MrRobin.

[MrRobin]

Have you considered getting a mortgage through a contractor-friendly lender? Trying to get an underwriter at a standard lender to understand the way contractors work is akin to teaching a squirrel astrophysics.

Try the Contractor Mortgages link on the right of this forum.

[robin]

My partner is fully self employed and when we go through it asks for dividend info and 3 years accounts and accountant info so if I put myself as self employed which is kind of what people are saying then I can't answer those, I have no choice but to put employed.

The reason we wanted to go for this mortgage is because the rate is low, self cert mortgages are not always as competitive.

Of the many people that use umbrellas on this board just wondering what they did when they had to answer questions about employment/income for mortgages, loans etc

[LisaContractorUmbrella]

Legally speaking and for tax purposes you are employed by the umbrella company.

But from a risk / lender's point of view, you are probably seen as self employed since your 'employer' is not obliged to pay you when you're off or find you more work when one role dries up etc.

Actually, from 1st October, that's not strictly true

[Old Greg]

Have you considered getting a mortgage through a contractor-friendly lender? Trying to get an underwriter at a standard lender to understand the way contractors work is akin to teaching a squirrel astrophysics.

Try the Contractor Mortgages link on the right of this forum.

+1 - they're very good and you get a standard rate mortgage.