umbrella company advice

[malvolio]

I don't think so, I know so many people who get much more than other contractors through this kind of umbrella companies. I don't know details of any scheme, but on the same shift if I get 140 with paye normal umbrella, with these schemes my colleagues get at least 200and more approx.

For now. One day they will receive a six figure tax demand and probably not know how to pay it...

And that's why we always say to stay well away from anything that pays more than 60% of gross or thereabouts.

[mtro27]

To your knowledge, has this ever happened?

I don't think so, I know so many people who get much more than other contractors through this kind of umbrella companies. I don't know details of any scheme, but on the same shift if I get 140 with paye normal umbrella, with these schemes my colleagues get at least 200and more approx.

[Paralytic]

If a liquidator found out that agencies had repeatedly referred contractors to this sort of avoidance scheme, he/she could sue the agencies for the tax losses on the basis that, to generate a higher than normal commission, they'd knowingly turned a blind eye to the tax avoidance taking place

And it's easier to pursue one agency than a hundred contractors ………...

To your knowledge, has this ever happened?

[Ian Richardson GT Leeds]

Dishonest Assistance Claims Against Agencies

HMRC need to set up to the mark and start prosecuting those agencies for recommending these schemes. I thnk we need to see a big court case that highlights this sooner or later. I have spoken to a couple of agencies who are simply happy to turn a blind eye when the contractor insists on using them. I have to say the ones I have come across are all in the healthcare industry. If only it got back to the NHS as debt liability at some point!

If a liquidator found out that agencies had repeatedly referred contractors to this sort of avoidance scheme, he/she could sue the agencies for the tax losses on the basis that, to generate a higher than normal commission, they'd knowingly turned a blind eye to the tax avoidance taking place

And it's easier to pursue one agency than a hundred contractors ………...

[lucyclarityumbrella]

They are in it for themselves, not for the love of you, believe me.

HMRC need to set up to the mark and start prosecuting those agencies for recommending these schemes. I thnk we need to see a big court case that highlights this sooner or later. I have spoken to a couple of agencies who are simply happy to turn a blind eye when the contractor insists on using them. I have to say the ones I have come across are all in the healthcare industry. If only it got back to the NHS as debt liability at some point!

[eek]

Thanks for the advice, I thought there may be something dodgy with it. Anyway, where i work almost every single contractor within the same agency use this umbrella. They haven't reported any problem so far.

I also asked hmrc directly, but they are not able to give me an answer.
Just advised to walk away.

HMRC are slow at picking these things up as even at the best of times they only notice issues when they see the final figures at the end of the year - which means it can take a very long time.

And I suspect the kickbacks involved are giving the agency a very nice profit margin...

[cojak]

Agencies receive a massive commission for pushing people into these companies.

They are in it for themselves, not for the love of you, believe me.

[mtro27]

Thanks for the advice, I thought there may be something dodgy with it. Anyway, where i work almost every single contractor within the same agency use this umbrella. They haven't reported any problem so far.

I also asked tax advisors directly, but they are not able to give me an answer.
Just advised to walk away.

[eek]

Hi, I work for a nursing agency for different hospitals in my area.
I was asked if I wanted to join an umbrella company called elite managememt and consultancy.
The take home is 84%, they make a minimal wage payment and the rest paid as capital investment without tax due on it.
Has anyone had any experience with this umbrella?
I couldn't find many reviews or info, there is only a topic about it on this forum.
Thank you

Run a mile from them....

This forum will explain why https://www.contractoruk.com/forums/...eme-enquiries/ .

even if the choice is this contract or unemployment for your longer term (financial and mental) well being unemployment would be the far saner option

[wattaj]

Please do not use them. Anything saying you are only paying 16% in tax, NI and fees is doing something that HMRC will not take kindly to.

Also, please advise your friends and colleagues that such agencies are VERY bad news. Avoid.

[WTFH]

Hi, I work for a nursing agency for different hospitals in my area.
I was asked if I wanted to join an umbrella company called elite managememt and consultancy.
The take home is 84%, they make a minimal wage payment and the rest paid as capital investment without tax due on it.
Has anyone had any experience with this umbrella?
I couldn't find many reviews or info, there is only a topic about it on this forum.
Thank you

Please do not use them. Anything saying you are only paying 16% in tax, NI and fees is doing something that HMRC will not take kindly to.

[mtro27]

Hi, I work for a nursing agency for different hospitals in my area.
I was asked if I wanted to join an umbrella company called elite managememt and consultancy.
The take home is 84%, they make a minimal wage payment and the rest paid as capital investment without tax due on it.
Has anyone had any experience with this umbrella?
I couldn't find many reviews or info, there is only a topic about it on this forum.
Thank you