IR35 post April 2020: Choosing a legitimate Umbrella

[lucyclarityumbrella]

Yep - the site was removed because it sadly wasn't working and could not compete against the adverts some people placed around the search results.

Still exists, but as more of a resource site at present with some useful advice on what to look out for.

[Bankrobber]

Umbrellas and Pensions

No. They generally don't care about doing anything more than the absolute minimum to meet legislation.

That said Contractor Umbrella used to allow you to put as much as you want in to their scheme. Once you are done you just transfer it to your SIPP.

I've just joined as been looking into UCs as got little option come March 2019.

My agency recommended 5 - one of which my accountants recommended - after speaking with them I reckon my choice is made.

A few things I've noticed (happy to be corrected or educated if I've misinterpreted)
1. Avoid companies saying they can get you higher take home pay through something called "Dual Employment" - I'm finding reviews of a particular company offering this saying to "avoid" - and one individual who was asked to pay back tax. Interestingly I was told on a call not to mention this to my agency!
2. I'm finding more companies offering salary sacrifice with regards to pensions. Basically, I already pay into a private pension. The UC will now deduct this from my gross pay and pay it to the private pension on my behalf. I then save on NI/Tax as I'm taxed on a lower gross (ie. gross minus pension contrib). From illustrations this works well for me. Alternative is I pay it myself from my net pay and then claim tax relief in my annual tax return. Personally I prefer the salary sacrifice option. However, one thing to consider is that if you don't earn in a month or more (e.g. between contracts - you have to pay the pension yourself).
3. Most of the big registered UCs are pretty similar in relation to fees so I'm not too hung up on that. And if you don't hit payroll in a particular week or month - then no fee.
4. You get some holiday pay! It's not great - but for someone like me who takes a lot of unpaid holidays - it's nice to think I'm getting something back!
5. And worth checking you can leave a UC at short notice - so that if not happy with them you can switch quickly.

[lucyclarityumbrella]

1. Avoid companies saying they can get you higher take home pay through something called "Dual Employment" - I'm finding reviews of a particular company offering this saying to "avoid" - and one individual who was asked to pay back tax. Interestingly I was told on a call not to mention this to my agency!

Surely that would cause alarm bells to ring???

2. I'm finding more companies offering salary sacrifice with regards to pensions. Basically, I already pay into a private pension. The UC will now deduct this from my gross pay and pay it to the private pension on my behalf. I then save on NI/Tax as I'm taxed on a lower gross (ie. gross minus pension contrib). From illustrations this works well for me. Alternative is I pay it myself from my net pay and then claim tax relief in my annual tax return. Personally I prefer the salary sacrifice option. However, one thing to consider is that if you don't earn in a month or more (e.g. between contracts - you have to pay the pension yourself).

Lots of threads recently on this

3. Most of the big registered UCs are pretty similar in relation to fees so I'm not too hung up on that. And if you don't hit payroll in a particular week or month - then no fee.

Should be right - but always confirm with the umbrella.

4. You get some holiday pay! It's not great - but for someone like me who takes a lot of unpaid holidays - it's nice to think I'm getting something back!

Again ask more about this - this will come from the gross contract rate at the end of the day!

5. And worth checking you can leave a UC at short notice - so that if not happy with them you can switch quickly.

You need to check the contract of employment terms, most will have a notice period that you need to serve.

HTHs

[Hanbanthankyoumam]

3. Most of the big registered UCs are pretty similar in relation to fees so I'm not too hung up on that. And if you don't hit payroll in a particular week or month - then no fee.



I've heard that any FCSA umbrella has to price match with the other accredited umbrellas, meaning that the contractor is paying a minimum of £20 per week, can anyone confirm this?

Got to love the umbrella rumour mill!

[DolanContractorGroup]

3. Most of the big registered UCs are pretty similar in relation to fees so I'm not too hung up on that. And if you don't hit payroll in a particular week or month - then no fee.

I've heard that any FCSA umbrella has to price match with the other accredited umbrellas, meaning that the contractor is paying a minimum of £20 per week, can anyone confirm this?

Got to love the umbrella rumour mill!

Hi Hanbanthankyoumam,

No, I don't think that's the case. We've recently been put on another PSL and all umbrella's have different margins (we didn't have to change ours). It's a business decision to lower the margin to compete with other umbrellas.

Thanks


Zeeshan

[WTFH]

I've heard that any FCSA umbrella has to price match with the other accredited umbrellas, meaning that the contractor is paying a minimum of £20 per week, can anyone confirm this?

Got to love the umbrella rumour mill!

Care to mention where you heard that from?

Is it a genuine rumour or one of those ones that non-FCSA businesses spread to say "come to us, we can give you far higher returns than the cartel of regulated umbrellas" ...and are maybe based in Malta/Cyprus/Isle of Man, or their directors might get a mention in the Panama Papers?

[cojak]

A fine time to point to this, I think: HMRC advice on Dodgy Umbrellas

[Hanbanthankyoumam]

Care to mention where you heard that from?

Is it a genuine rumour or one of those ones that non-FCSA businesses spread to say "come to us, we can give you far higher returns than the cartel of regulated umbrellas" ...and are maybe based in Malta/Cyprus/Isle of Man, or their directors might get a mention in the Panama Papers?

I've been told it by a few different sources, none of which would appreciate being named in a forum; but to me they're trust worthy enough sources. To expand, apparently upon being accredited you are asked to ensure that you price match with the other accredited umbrellas to ensure there's no undercutting.

Was just curious to see if anyone else had heard anything similar or if it was a genuine rumour?

With all the bad press surrounding the FCSA, HTE and REC, I genuinely don't know what to believe and if it is the monopolisation it very much seems to be.

[cojak]

I've been told it by a few different sources, none of which would appreciate being named in a forum; but to me they're trust worthy enough sources. To expand, apparently upon being accredited you are asked to ensure that you price match with the other accredited umbrellas to ensure there's no undercutting.

Was just curious to see if anyone else had heard anything similar or if it was a genuine rumour?

With all the bad press surrounding the FCSA, HTE and REC, I genuinely don't know what to believe and if it is the monopolisation it very much seems to be.

Zeeshan from Dolan Accountancy/Contractor Umbrella (an FCSA member) has stated that he did not think that this was the case.

I notice that you chose to ignore him.

(Oh, and what bad press might that be? - it's probably got nothing on the bad press that IOM-associated umbrellas have got...)

[Hanbanthankyoumam]

Zeeshan from Dolan Accountancy/Contractor Umbrella (an FCSA member) has stated that he did not think that this was the case.

I notice that you chose to ignore him.

(Oh, and what bad press might that be? - it's probably got nothing on the bad press that IOM-associated umbrellas have got...)

Wow. Sensing some attitude here Cojak. You ok?

Nothing to do with ignoring Zeeshan, he was referring to a PSL of umbrellas with an agency and offered no definitive on the FCSA stance - if you re-read his previous message he says 'doesn't think this is the case'; nothing definitive there (no offence to you at all Zeeshan).

The bad press I'm referring to is the Save NHS Workers Public Articles although referencing public sector, the FCSA is a main concern here.

Was asking if anyone else had heard the same. That's all. Calm down.