Everything you ever wanted to know about umbrella companies but were afraid to ask...

[Sockpuppet]

Is it worth adding that when you work through an umbrella you are, as a legal obligation (so I'm told), obliged to pay a percentage of your income into a holiday fund. You can then claim holiday pay for any days off and any money remaining in the pot in December will be paid back in that month's pay packet.

I don't know how many umbrellas enforce this rule, but mine does and as I say they told me it's a legal requirement.

Dont some just say you took X days holiday in that month (usually the same as you would have put in).

If you work Mon-Fri they just say you took every saturday as holiday and pay you the money.

Not sure if its a legal requirement but you can opt to take a payment instead of the holiday as I used to do it when I was an agency tep many moons ago (warehouseing so nothing uber rich paying)

[tim123]

I think the bozos in Brussels have put the mockers on that... my mate now has to have "Saturdays" off every month for that very reason.

It was the European Court that enforced this, which IIRC is in Strasbourg.

[ASB]

Is it worth adding that when you work through an umbrella you are, as a legal obligation (so I'm told), obliged to pay a percentage of your income into a holiday fund. You can then claim holiday pay for any days off and any money remaining in the pot in December will be paid back in that month's pay packet.

I don't know how many umbrellas enforce this rule, but mine does and as I say they told me it's a legal requirement.

What you describe is an effect. There is a legal requirement to provide holiday pay. I can't remember the minimum number of days etc. If an umbrella does not deduct this before setting the wage levels then they will have a problem when you claim it. After all, all the liabilities have to come from your gross fees.

There are similar issues with SSP, SMP and paternity leave - although in these case certain rebates from government are available in some cases.

[freshblue]

Dont some just say you took X days holiday in that month (usually the same as you would have put in).

If you work Mon-Fri they just say you took every saturday as holiday and pay you the money.

Not sure if its a legal requirement but you can opt to take a payment instead of the holiday as I used to do it when I was an agency tep many moons ago (warehouseing so nothing uber rich paying)

My understanding is that hol pay can be rolled up (paid as part of salary) as long it is clearly shown etc.

[ASB]

My understanding is that hol pay can be rolled up (paid as part of salary) as long it is clearly shown etc.

Declared unlawful since July at the ECJ. http://www.biggartbaillie.co.uk/empl...yunlawful.aspx

[freshblue]

Declared unlawful since July at the ECJ. http://www.biggartbaillie.co.uk/empl...yunlawful.aspx

The ECJ set out very narrow and strict circumstances where the practice of rolled up holiday pay would be permissible.

Each legal advisor has various views imo!

[Foresight One]

Foresight One

Dear all

There are still compliant solutions out there for contractors working in the UK. If you are serious about looking for an advisor then please contact me by PM ([email protected]) and I would be happy to discuss various solutions based on your circumstances.

[dollfus]

Brussels, Strasbourg, same bunch of bozos...

Yeh, though the ECJ bozos are actually in Luxembourg.

[gezzagregz]

Help on choosing the right umbrella

Hi i found it difficult trying to choose the right umbrella.

i have always said the proof is in the pudding, and dont take anyones word that a certain umbrella is best.

look at this w ww.umbrellasupermarket.com/

[TheFaQQer]

SJD also do a contractors guide, which is good.