Crystal Umbrella

[cojak]

Crystal Umbrella

So who did you go with in the end.

I doubt you'll get an answer to that, this thread is a year old!

[tommyhayes]

Fees

All umbrella companies are obliged to pay SSP, SMP, SAP and SPP; they are also obliged to make payment between assignments - this should be funded by the umbrella company and not the contractor

By way of example:

Over 2 weeks a contractor works 120.5 hours at a rate of £19.50 per hour, his tax free expenses for those 2 weeks are £240 can you tell me what he'd receive net going through your system.

Thank You.

[tommyhayes]

Crystal

So who did you go with in the end.

Good Morning all.

My first post over here, but hopefully it's a useful one.

I'm about to take my first foray into contracting, and have elected to use an Umbrella company to get started. Following initial discussions with a few, I chose Crystal Umbrella, who seemed professional and courteous, and did me a fully salary illustration which at first glance I was happy with, including their monthly fee of £85 paid from the top line of the invoice.

A few days down the line, I've taken a closer look at the salary illustration. They list "additional required costs" of ~£370 which I had assumed was Employers NI contributions, however performing my own calculations employers NI should work out more like ~£300, so I asked the question. The answer was that the cost is Employers NI and is calculated as 13.8% of gross employee salary. Looking into Employers NI rates, I found this 13.8% is only payable on employee's earnings over the secondary threshold (approx £589 per month), hence the discrepancy in amounts, so I fired this back over to them expecting it was just an admin error in their illustration calculator.

Their response was disappointing, it turns out they do charge this on the whole salary, and is to cover "additional costs" including SSP, paternity pay, etc. Essentially this is a hidden fee over and above their £85 monthly admin fee. This cost is essentially 13.8% of the secondary threshold, so ~£82, bringing the total payable to Crystal to a fairly hefty £167 a month.

Needless to say I'm not overly happy this wasn't explained up front, or broken down for transparency, as due to the level of service I've received (very good), I'd have been inclined to stay with them anyway, however this calls into question the relationship and their business practice.

I believe other Umbrella's don't charge such fees, so I'll be taking another look around. Hopefully this information helps someone else be more vigilant to similar situations when selecting an Umbrella.

[richardrichard]

So I'm all signed up with Contractor Umbrella and have asked Crystal to end the relationship. I must say the service I've had from the people at Crystal has been excellent, but I can't agree with the hidden fees and business practice.

[The Spartan]

See the other thread in this forum.

It looks like some umbrella firms are indulging in sharp practise, and could even be falling foul of the unlawful deductions legislation.

This thread specifically: http://forums.contractoruk.com/umbre...-required.html

[Vallah]

So Parasol are charging Er's NI on the whole salary and not allowing for the nil rate band ?

See the other thread in this forum.

It looks like some umbrella firms are indulging in sharp practise, and could even be falling foul of the unlawful deductions legislation.

[simondolan]

There's another thread much like this about Parasol it would seem that they're doing exactly the same thing as Crystal which is absolutely deplorable.

So Parasol are charging Er's NI on the whole salary and not allowing for the nil rate band ?

[richardrichard]

Spoken with someone at Contractor Umbrella today, think I'll be going with them.

[The Spartan]

There's another thread much like this about Parasol it would seem that they're doing exactly the same thing as Crystal which is absolutely deplorable.

[Wary]

They haven't technically done anything wrong, they didn't list the cost as Employers NI but as "additional required costs". Obviously this is meant to look like employers NI and mislead but not illegal. I haven't actually invoiced through them yet, so they haven't had a penny, but I'm glad I found this out before hand.

Apologies, I should have read your post more carefully!

Anyway, we're both agreed that they should at least be transparent about all fees and I think Lisa has confirmed that they're not really justified in charging these additional fees.

Suggest you take your custom elsewhere and get the new company to put in writing up front that they won't charge any fees other than those agreed (which you should summarise)and they won't withhold any money from your monthly income for whatever reason (e.g. to cover for sick pay or holiday pay).

[LisaContractorUmbrella]

All umbrella companies are obliged to pay SSP, SMP, SAP and SPP; they are also obliged to make payment between assignments - this should be funded by the umbrella company and not the contractor

[richardrichard]

They haven't technically done anything wrong, they didn't list the cost as Employers NI but as "additional required costs". Obviously this is meant to look like employers NI and mislead but not illegal. I haven't actually invoiced through them yet, so they haven't had a penny, but I'm glad I found this out before hand.

I agree there's no excuse to not being transparent about such costs, if the way they're taken wasn't meant to mislead they would be broken down, not doing so requires the client/contractor to A - understand employers NI costs, and B - perform their own further calculations to find out how much the fees actually are over and above the employers NI. Evidently companies like this prey on people who can't/won't look into their illustration further.

[Wary]

Even if they feel that these additional fees are justified, there’s no condoning a lack of transparency in not agreeing them up front, and disguising them on the payslip as employers NI. I’d be furious if this happened to me. If true, I think you should give notice and threaten to sue.

There have been similar accusations against other Umbrellas recently, which is why one should always check their calculations carefully. I’ve recently gone brolly and there was no hidden deductions on my first payslip, having checked the calculations. Even though they only charge £9.99 per week (plus £10 pension contribution processing fee), there was no sign of them trying to squeeze extra from me.

[richardrichard]

Good Morning all.

My first post over here, but hopefully it's a useful one.

I'm about to take my first foray into contracting, and have elected to use an Umbrella company to get started. Following initial discussions with a few, I chose Crystal Umbrella, who seemed professional and courteous, and did me a fully salary illustration which at first glance I was happy with, including their monthly fee of £85 paid from the top line of the invoice.

A few days down the line, I've taken a closer look at the salary illustration. They list "additional required costs" of ~£370 which I had assumed was Employers NI contributions, however performing my own calculations employers NI should work out more like ~£300, so I asked the question. The answer was that the cost is Employers NI and is calculated as 13.8% of gross employee salary. Looking into Employers NI rates, I found this 13.8% is only payable on employee's earnings over the secondary threshold (approx £589 per month), hence the discrepancy in amounts, so I fired this back over to them expecting it was just an admin error in their illustration calculator.

Their response was disappointing, it turns out they do charge this on the whole salary, and is to cover "additional costs" including SSP, paternity pay, etc. Essentially this is a hidden fee over and above their £85 monthly admin fee. This cost is essentially 13.8% of the secondary threshold, so ~£82, bringing the total payable to Crystal to a fairly hefty £167 a month.

Needless to say I'm not overly happy this wasn't explained up front, or broken down for transparency, as due to the level of service I've received (very good), I'd have been inclined to stay with them anyway, however this calls into question the relationship and their business practice.

I believe other Umbrella's don't charge such fees, so I'll be taking another look around. Hopefully this information helps someone else be more vigilant to similar situations when selecting an Umbrella.