Umbrella Companies accountability

[Culps67]

So is it only poor contractors that are accountable for this mess ? The Umbrella Companies are not interested in helping, they just wash their hands of it. I spoke to three different people at the umbrella I was signed up with. One person said they would provide paperwork that would get HMRC off my back, another said they’d never heard of this loan charge (!) and another said “We are a tax avoidance company and you knew what you were signing up for”. I bloomin did not know at all. I accepted a job in 2016 through an agency and they recommended the Umbrella company.

“Oh speak to the finance guy to sort out the paperwork, he’s a lovely bloke” they said. So a quick check of their website to see if all looks legit and I signed up. So time moves on, we have been naughty people who have avoided paying tax and now have to pay up.

What about the Umbrella Companies who set these schemes up ? Are they not accountable at all ? If the HMRC deem these schemes illegal then why is the umbrella company I was with still displaying the following on their front page ?.......

THE AGENCY PARTNER
TRUSTED
For many years, we have worked with the industry’s leading recruitment agencies and been trusted by the contractor to deliver hassle free payroll solutions.

COMPLIANT
Can you afford to risk your reputation? Well, neither can we which is why we are fully compliant and safeguard your contractors earnings and your reputation.

WELCOME
…to XXXXX Umbrella. One of the UK’s most respected, trusted and compliant contractor payroll organisations.


Surely this is illegal then ? So who are tackling these outfits ?

I am going to make it my personal pledge to warn every man and his dog on this planet away from these people.

Apparently the agencies may be in trouble for recommending non-compliant outfits (Criminal Finances Act 2017).

What an utter mess.

[malvolio]

What you're missing is that these are not Umbrella Companies in the strict sense of the term, they merely label themselves as such to catch potential clients. Go far enough up the chain and you won't find an ethical UK company but a small group of interlinked offshore companies making a lot of money outside the UK's jurisdiction.

[Culps67]

So that means they are untouchable then ? They can carry on luring in more people by advertising that they are trustworthy and compliant ? How does that work then ?

[malvolio]

So that means they are untouchable then ? They can carry on luring in more people by advertising that they are trustworthy and compliant ? How does that work then ?

Quite nicely if you are running such a thing.

Not at all if you are HMRC because paying the right tax is your problem so they come after you for it

Very badly if you are caught by them through either not knowing enough about them and/or believing their sales pitch. Which is one reason we keep saying that being a contractor is about a lot more then independence and income.

They aren't even breaking any UK advertising laws since their returns are actually achievable - just not by anyone taking a living wage.

[northernladuk]

“We are a tax avoidance company and you knew what you were signing up for”

Shame they didn't put that in writing.

[Culps67]

I’m not sure I know what the word “law” means.

If Parliament can retrospectively change the law for this loan charge mullarky what’s to stop them retrospctively introducing a law that says the national speed limit is 60mph and everyone going over 60mph since 2009 will be fined.

There is no difference surely ? This country is screwed.

[Culps67]

From the Umbrella Company’s FAQ page...

WHAT HASSLE?

You’re busy doing what you do best – focusing on your work. You really don’t need the hassle of chasing late payments, expenses not being paid etc. We have a 100% satisfaction policy. Yes, 100%! And for you, less hassle is less time wasted. Less time wasted is less money lost – time is money.


Reckon it’s worth asking what the 100% satisfaction policy is ?

[malvolio]

I’m not sure I know what the word “law” means.

If Parliament can retrospectively change the law for this loan charge mullarky what’s to stop them retrospctively introducing a law that says the national speed limit is 60mph and everyone going over 60mph since 2009 will be fined.

There is no difference surely ? This country is screwed.

The loan charge is not properly retrospective in that sense. A firm line was drawn in about 2008 or so about aggressive avoidance, the charge is hugely unfair and badly thought out but it has a legal basis.

[Culps67]

The loan charge is not properly retrospective in that sense. A firm line was drawn in about 2008 or so about aggressive avoidance, the charge is hugely unfair and badly thought out but it has a legal basis.

Aah I didn’t know that. I only knew about this whole fiasco about four weeks ago.

[malvolio]

Hmmm....

So now you can see why so many people are incensed about HMRC's complete failure to respond 10 years ago and counting...