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Umbrella companies and profit sharing bonus

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    Umbrella companies and profit sharing bonus

    Hello,

    I'm a vet who locums at various clinics using an umbrella company. One of the main clinics I have been locumming for has cut my hours back to 25% of what they were, and I only have 5 shifts at other clinics set up over the next month. Currently most vet clinics are running on skeleton staff and only seeing emergencies - no one is hiring locums at the moment. I currently have no work at all for May, although the current clinic I'm at may be able to keep me on for just a few hours a week.

    I'm panicking a bit, as you can imagine.

    I would be better off financially if I was furloughed, however, I'm realizing now that working through an umbrella company may have screwed me over. They pay my salary as minimum wage and the rest as 'discretionary profit sharing bonus' scheme.

    Does this mean I will only be eligible for 80% of minimum wage through the JRS? Is there going to be any clarification on this considering that many umbrella companies operate this way?

    #2
    Originally posted by Luciezilla View Post
    Hello,

    I'm a vet who locums at various clinics using an umbrella company. One of the main clinics I have been locumming for has cut my hours back to 25% of what they were, and I only have 5 shifts at other clinics set up over the next month. Currently most vet clinics are running on skeleton staff and only seeing emergencies - no one is hiring locums at the moment. I currently have no work at all for May, although the current clinic I'm at may be able to keep me on for just a few hours a week.

    I'm panicking a bit, as you can imagine.

    I would be better off financially if I was furloughed, however, I'm realizing now that working through an umbrella company may have screwed me over. They pay my salary as minimum wage and the rest as 'discretionary profit sharing bonus' scheme.

    Does this mean I will only be eligible for 80% of minimum wage through the JRS? Is there going to be any clarification on this considering that many umbrella companies operate this way?

    Sounds like you're a bit stuck but in more ways than you think.
    You will only be entitled to 80% of the base salary/minimum wage. And you will need to be furloughed completely to get that.

    More worringly, you appear to have a entered into a tax dodge scheme with the umbrella.

    I woud suggest immediately quitting the umbrella before you do any more damage.
    Last edited by Contractor UK; 28 June 2020, 20:23.
    See You Next Tuesday

    Comment


      #3
      I’m afraid that your umbrella has screwed you over, but not in the way you may imagine.

      Lance is right. When you have a moment tread this thread.

      https://www.contractoruk.com/forums/...-umbrella.html
      "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
      - Voltaire/Benjamin Franklin/Anne Frank...

      Comment


        #4
        Which Umbrella is it. We may be able to point you in the direction of discussions and how to progress if we know.

        If you don't want to say then type name in to this search in google and see if any relevant threads come up. I'd be very surprised if they don't.

        <umbrella name> site:contractoruk.com/forums

        Interesting situation though. Looks like we are going to get a raft of people suddenly appearing that are in these schemes and didn't know it. Now they've a reason to dig it to how it works the bad news will become evidence.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

        Comment


          #5
          Originally posted by northernladuk View Post
          Which Umbrella is it. We may be able to point you in the direction of discussions and how to progress if we know.

          If you don't want to say then type name in to this search in google and see if any relevant threads come up. I'd be very surprised if they don't.

          <umbrella name> site:contractoruk.com/forums

          Interesting situation though. Looks like we are going to get a raft of people suddenly appearing that are in these schemes and didn't know it. Now they've a reason to dig it to how it works the bad news will become evidence.
          I've been using i4 group UK - they seemed to have a good reputation from other vet locums I know. I'm horrified - I assumed I'd been paying tax and doing everything legally. :-(

          EDIT: So I am totally stuck between a rock and a hard place - I elected to use an umbrella company to avoid having to worry that taxes etc were not being sorted properly and now I'm involved in something dodgy? Their website makes it look like they only pay me that way to prove to the government that they pay their employees minimum wage, that I am still being taxed appropriately - what are they doing that is dodgy? I just don't fully understand all this - my job is vetting not accounts!
          Last edited by Luciezilla; 29 March 2020, 16:42.

          Comment


            #6
            Oops I4 was a member of “not all umbrellas are equal” which means they are a standard umbrella - as their calculator shows.

            personally their fees seem high but I understand why as locum work would require consolidating income from multiple practices.

            so Luciezilla you have nothing to worry about by the looks of it people are reading too much into the way i4 describe the profit part of you income (and all umbrellas use a “profit” proportion within their pay to justify the monthly fluctuations
            Last edited by eek; 30 March 2020, 12:23.
            merely at clientco for the entertainment

            Comment


              #7
              Originally posted by eek View Post
              Oops I4 was a member of “not all umbrellas are equal” which means they are a standard umbrella - as their calculator shows.

              personally their fees seem high but I understand why as locus work is about consolidating income from multiple practices.

              so Luciezilla you have nothing to worry about by the looks of it people are reading too much into the way i4 describe the profit part of you income (and all umbrellas use a “profit” proportion within their pay to justify the monthly fluctuations

              Sooo - I can be relieved I'm not involved in anything dodgy (HUGE SIGH OF RELIEF) BUT I'm still not eligible to be furloughed for 80% of my *true* income if I have no work coming in?

              Comment


                #8
                The NMW plus bonus appears to be the standard way. Explained here by Lisa. Other threads discussing it are available.

                https://www.contractoruk.com/forums/...imum-wage.html
                'CUK forum personality of 2011 - Winner - Yes really!!!!

                Comment


                  #9
                  Originally posted by Luciezilla View Post
                  Sooo - I can be relieved I'm not involved in anything dodgy (HUGE SIGH OF RELIEF) BUT I'm still not eligible to be furloughed for 80% of my *true* income if I have no work coming in?
                  aplogies for putting the frighterners on. i4 does look legit.
                  Just the wording of your original post set alarm bells ringing.

                  worth a look at other threads on here as some umbrellas are better than others. And some are dodgy.
                  Caveat emptor.
                  See You Next Tuesday

                  Comment


                    #10
                    Originally posted by northernladuk View Post
                    The NMW plus bonus appears to be the standard way. Explained here by Lisa. Other threads discussing it are available.

                    https://www.contractoruk.com/forums/...imum-wage.html
                    My main concern right now really is whether I can be furloughed by my umbrella company (which most things I have read seem to imply should be possible) AND whether I will be eligible for 80% of my true income or if I will be limited to just 80% of the minimum wage due to the way my umbrella company does things. Any clarification on this?

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