Reply to: READ ME before choosing your umbrella

[cojak]

And I'm putting this here as I want to stick something else.

Don't be fooled by imposter umbrella companies

[northernladuk]

Hi Lucy - contacted you recently about joining your umbrella. When I spoke to someone there, they said you only offer PAYE, but your tag line says you now also offer Ltd. Could we talk?

Check out the front page of their website and all will become clear.

[Runster]

That's called the CUK forum isn't it?

Hi Lucy - contacted you recently about joining your umbrella. When I spoke to someone there, they said you only offer PAYE, but your tag line says you now also offer Ltd. Could we talk?

[lucyclarityumbrella]

Or that have the best referrals system.

[northernladuk]

If only there was some sort of list, or "association" of Umbrellas that can be used to vouch for their reputations.....

Or that have the best referrals system.

[lucyclarityumbrella]

If only there was some sort of list, or "association" of Umbrellas that can be used to vouch for their reputations.....

That's called the CUK forum isn't it?

[SimonMac]

If only there was some sort of list, or "association" of Umbrellas that can be used to vouch for their reputations.....

[cojak]

Due diligence and your part in it.

For your due diligence look up the company in Companies House: https://www.gov.uk/get-information-about-a-company

Find the names of the Directors and look them up, find out what other companies the have been associated with.

Then go to the HMRC Scheme Enquiries Forum and do a search for a few of the companies associated with that Director/s (it will never be only one company).

If you don't find anything in there - excellent. That is one more step (not the only one mind) that may indicate that they are a 'proper' umbrella.

If you do find the names of those old companies popping up in a forum indicative of pain and misery of many years standing, however...

[cojak]

I agree entirely, this is an absolute time bomb for an awful lot of contractors who have been tempted by these schemes.

And let's not forget those dodgy 'tax efficient' umbrellas either - they're caught too...

[lucyclarityumbrella]

The other thing to be aware of is that if you don't have a complete NI contribution record over a minimum of 30 years then you will have a nasty shock when you come to retire.....no full state pension

That would be a very long time on the bench for a contractor either that or maybe it is time to find a permie role.

[Beacon Umbrella]

Take home thats too goo to be true

Read this first before picking up the phone.

Guidance (on) Providers of Tax Avoidance Schemes (POTAS)

And read this as well 10 things you need to know about tax avoidance

Be aware that by using a legitimate umbrella that will pay the expected amount of tax and NI, you will receive approximately 65% of your day rate.

If you pay less than 35% tax (>65% take home) then I would imagine HMRC are NOT receiving PAYE amounts and will come after you for the gap.

There are sanctions and fines that HMRC can impose on these dodgy providers, but I've never heard of any company being caught and I don't know anywhere where these penalties are published, and that's the main deterrent in my book.

I agree entirely, this is an absolute time bomb for an awful lot of contractors who have been tempted by these schemes.

If its too good to be true then I'm afraid that it is.

The other thing to be aware of is that if you don't have a complete NI contribution record over a minimum of 30 years then you will have a nasty shock when you come to retire.....no full state pension

[lucyclarityumbrella]

I asked if there would be any feedback and was told that there would definitely not be. I then pointed out that myself, and many others on CUK, feel that HMRC do not do enough to tackle promoters. I was told that this was well beyond his pay grade.

Maybe snail mail might be worth a go - apparently, they respond better to the old fashioned way of communicating

HMRC Fraud Hotline
Cardiff
CF14 5ZN
United Kingdom

[BrilloPad]

Here you go https://www.gov.uk/government/organi.../tax-avoidance

I just tried to call this. The conversation: -
them: HMRC counter avoidance
me : is this the right number to report a tax avoidance scheme?
them : errr - might be. where did you get this number?
me: internet
them : errr - I will ask

Someone else then came on the line and filled in a form which I was told would be passed onto a specialist investigation unit.

I asked if there would be any feedback and was told that there would definitely not be. I then pointed out that myself, and many others on CUK, feel that HMRC do not do enough to tackle promoters. I was told that this was well beyond his pay grade.

[lucyclarityumbrella]

Hmmm.. Good question - I'll have a look.

Here you go https://www.gov.uk/government/organi.../tax-avoidance

[cojak]

Hmmm.. Good question - I'll have a look.