IR35 post April 2020: Choosing a legitimate Umbrella

[DolanContractorGroup]

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.

Hi Hanbanthankyoumam

Nothing like this happens. I thought you meant that maybe some FCSA umbrellas were colluding to keep margins at the same level, which I doubt FCSA members would do. I can definitely say though that agreeing to price match isn't a requirement to join FCSA, and if anything, it's probably advised against.

Again, we're on a lot of FCSA only PSL's and a lot of us have different margins.

Thanks


Zeeshan

[WTFH]

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.

Interesting that your source is a website with no "About" info, that has links at the bottom to Twitter, Instagram and LinkedIn, all of which are non-existent accounts. It's been running since July (or possibly September) 2019.
The same website is also publishing legal correspondence marked "Not for publication or broadcast".

I'd take what they are saying with a pinch of salt as they don't quite seem to be acting in a professional way.

[FOHMRC]

comparisoncontractor.com - another scam scheme?

Having been declared inside IR35 in my current contract come April 2020 & looking at umbrella options now, I received this email from comparisoncontractor.com on an "alternative" umbrella option, hoping someone can advise, link to their "brochure" https://drive.google.com/open?id=1kp...SWkz7USCgMuAnZ

How it works

You will become an employee of one of our Umbrella Companies. As an employee, IR35 just isn't applicable so this is something you needn't worry about.

The Umbrella Company will pay you a salary and pay all Tax and NIC's due on your behalf.

In addition to this you will become a member of the Consultancy Network you will also be eligible to receive Profit Share. There are a number of ways to receive Profit Share, all of which are fully disclosed to HMRC and are taxable.

On an invoice of £2,736.00 you would retain £2,080.02 (76.02%) in total assuming a tax code of 1250L and no other income.

Been quoted higher than 80%? To get above 80% you would need to be using a Tax Avoidance Scheme which is confirmed by HMRC here. Please ask if you require further details on this.

You will also benefit from the following:

Insurances Included

Same-day Payments

No Loans

Dedicated Account Manager

Significant Referral Bonuses

A range of benefits from the Consultancy Network[/I]

Sounds like the usual scam scheme to me, just more cleverly worded I feel, but not sure if anyone has used them? Should I avoid at all costs?

[Paralytic]

I particularly like the "beware of those scammers out there, but trust us".

According to the brochure "It’s a bit like Rightmove for estate agents" and saying you can get money out by using the 10% ER tax rate. How could it possibly be dodgy!

Doesn't even address how clients or agencies would engage with these "Management Companies"

Does it sounds too good to be true?

If you want to go for it, then I'm sure it will delivery 76% returns for a few years, but I'd be holding the rest back, waiting for HMRC calling a few years down the line.

[ladymuck]

Wouldn't touch that with anyone's

[cojak]

“significant referral bonuses”



Just make sure that you don’t LinkIn to any of your referrals in case they come after you with a pitchfork later on.

[cojak]

And this website even has a list of potential tax avoidance umbrellas!

Disguised as an umbrella company | All Umbrella Companies Are Equal

[lucyclarityumbrella]

And now is the time that this thread will probably blossom as those "new" scheme's emerge

[ascender]

Presumably, going by some of the recent (and not-so recent) threads on here about incorrect tax handling by brollies, one of the important things people should be doing when they get their first payslip is to check with their accountant that everything looks OK and the tax code is correct?

[lucyclarityumbrella]

Presumably, going by some of the recent (and not-so recent) threads on here about incorrect tax handling by brollies, one of the important things people should be doing when they get their first payslip is to check with their accountant that everything looks OK and the tax code is correct?

Or ask the brolly to talk you through it, if you are unsure. They will work off the tax code they are provided with either from the P45 or Starter Checklist, so that side is something they cannot alter without HMRC confirming. If you are concerned by it, speak with the brolly first as they may explain what could happen, if they think it will alter for any reason, then if you think it is wrong - you will need to speak with HMRC direct. I am seeing more contractors who are coming from Ltd to umbrella, and their tax codes are altering becuse it looks like they have dual employment - be careful on that one