IR35 post April 2020: Choosing a legitimate Umbrella

[cojak]

If you've come here looking for advice regarding umbrella companies here it is.

Choose a company that complies with HMRC guidelines and current UK legislation*.

You can find a selection here (not perfect but it’s the best we’ve got): FCSA • Members Directory • Accredited Members FCSA

Some companies will offer you the moon on a stick, or 65%+ of your day rate, or a 'unique solution' to IR35. It sounds too good to be true, doesn't it?

That's because it is.

Have a read of this: Don't be fooled by imposter umbrella companies

Because if you join them you will very likely end up here HMRC Scheme Enquiries

Also, have a read of this: https://www.contractoruk.com/forums/...-umbrella.html

And read the contract before you sign!

And then check if the company is in the London Gazette.

And for newbies, definitely don't join a company with offices in the Isle of Man or Jersey (or Directors with any association to IOM, now or in the past).

Just don't.

(*When an umbrella states that they are 'Fully HMRC compliant', ask them what they mean by this - do they mean that they comply with HMRC guidelines? HMRC do not offer compliance reviews and will not 'approve' umbrella companies. Basically they say this just to get you to sign up.)

PS. Growth Share Schemes are definitely NOT legit. https://www.contractoruk.com/forums/...e-schemes.html

More info from HMRC here Spot the signs of tax avoidance - GOV.UK (www.gov.uk)

And here's a tool you can use to check/confirm that you're using a legitimate umbrella:
Do you work through an umbrella company? – Guidance – GOV.UK (tax.service.gov.uk)

[NHS1979]

Who do people rate as a good umbrella company?

[northernladuk]

Contractorumbrella. Lucy who's the MD is all over this and has put a lot of effort in to fighting legislation in the past. Being very active on the forums she'll know exactly what's going on and what our situation is.

Oh, she runs the All Umbrellas Are Equal bit as well.

Www.contractorumbrella.com

[lucyclarityumbrella]

Who do people rate as a good umbrella company?

Hi NHS1979, always happy to help, just give me a shout and I can talk you through everything you need to know.

[lucyclarityumbrella]

Contractorumbrella. Lucy who's the MD is all over this and has put a lot of effort in to fighting legislation in the past. Being very active on the forums she'll know exactly what's going on and what our situation is.

Oh, she runs the All Umbrellas Are Equal bit as well.

PAYE Umbrella Companies for UK Contractors | Contractor Umbrella Company

Thank you

[breaktwister]

Apologies for what may be a very basic question but I have not seriously considered the umbrella route until now. If end-clients require Professional Indemnity insurance to be in place is this expense allowed to be deducted by the umbrella before processing tax/nic etc?

[eek]

Apologies for what may be a very basic question but I have not seriously considered the umbrella route until now. If end-clients require Professional Indemnity insurance to be in place is this expense allowed to be deducted by the umbrella before processing tax/nic etc?

Most umbrella companies will already have a suitable Professional Indemnity insurance policy and you would be covered by it..

[nucastle]

You don't need insurance for yourself if you are using an umbrella. The umbrella has insurance which the agent will want to see sight of.

The only thing you need to do when using an umbrella is just to turn up for work, do your time sheets and then get paid and receive your pay slip.

[breaktwister]

Another umbrella related query: I am talking to a few agencies regarding PS positions and have said that I would consider taking an "inside IR35" role if something could be arranged regarding T&S. My logic on this is that, if I am deemed to be an employee of the client then why can they not put "away from home on employers business" expenses through their accounts as a legitimate business expense?

My question is how such an arrangement would be billed and processed via an agency and umbrella?

[eek]

Another umbrella related query: I am talking to a few agencies regarding PS positions and have said that I would consider taking an "inside IR35" role if something could be arranged regarding T&S. My logic on this is that, if I am deemed to be an employee of the client then why can they not put "away from home on employers business" expenses through their accounts as a legitimate business expense?

My question is how such an arrangement would be billed and processed via an agency and umbrella?

This is covered in the FAQs I spent ages researching which you seem to want to ignore while asking utterly pointless questions about:

See the bottom bit of 404 Not Found . But as a hint the umbrella would treat your expenses as income so you would get a nasty surprise.