Umbrella reclaim - is it legit?

[helencarter88]

Hi everyone

There is this company called Umbrella Reclaim. They’re saying they can reclaim all employers NI up to 15 years by group legal action.

We were given a choice to be PAYE, PSC or umbrella. Umbrella was uplifted.

UR are saying they will take the agency - not umbrella companies - to court for negligence. Colleagues have paid them £99 upfront.

I was just wondering if anyone had been successful with this? All a bit fishy to me and they had a video on their Facebook where they said they’ve spoken to a tax expert QC and he’s 95% sure of success but the video has now been deleted. Obviously the thought of a 10k plus payout is very attractive. Just wondering if anyone had an info as could be a scam.

[cojak]

This has already been asked...

https://forums.contractoruk.com/umbr...used-this.html

[eek]

And while it's been asked I think it's worth saying my viewpoint has changed to something way more nuanced from no chance - the umbrella companies don't have enough money.

I think it's best to split things into 2 different pots:-

Post April 2020 (Contracts beginning after Key Information Documents were introduced on April 6th 2020).
a) contract with Key Information Document provided - not a chance of reclaiming a penny (assuming an the Key Information document included Employer NI deductions).
b) contract without a Key Information Document provided - very likely to succeed as process wasn't followed

Pre April 2020

Prior to this week I didn't think there was a chance of getting much money as Umbrella firms getting £5-10 a week (£20-£40 a month) don't have the margin to pay £500+ Employer NI bills - my concern was going to be that you would win the case but the money didn't exist to pay the resultant compensation claim - it would be a hollow victory.

However that was before the Low Income Tax Reform group report on Labour Market Intermediaries (https://www.litrg.org.uk/sites/defau...eport-2021.pdf ) and the Referral Fees section within it.

Reading that I now think Umbrella Reclaim are correct in their assertion that they will be able to transfer the claim up the chain to the agency and the agency (especially a large group that is the worst culprit for these fees) will have enough income to pay the resultant compensation claim. And I suspect the difference is going to be down to:

a) were you allowed to use any umbrella you wanted (and you picked one that wasn't on the agency's list)

or

b) did you use one of the agency's list (and the umbrella paid either via a marketing fee or commission to be on that list)

So if you think you have a claim and if you either of the second groups I now suspect it's not completely worthless as the responsibility belongs both to the umbrella company and the agency itself. And the agencies have enough money to pay the resultant bills even if the umbrella company disappears.

[ladymuck]

2020 or 2021?

[eek]

2020 or 2021?

Key Information Documents were introduced on April 6th 2020 and should have been provided by all Agencies from that date.

Working via an umbrella after that date if you didn't receive the appropriate document showing how the deductions I believe the case would be a slam dunk and the deductions made won't reflect what was "agreed".

[ladymuck]

Key Information Documents were introduced on April 6th 2020 and should have been provided by all Agencies from that date.

Working via an umbrella after that date if you didn't receive the appropriate document showing how the deductions I believe the case would be a slam dunk and the deductions made won't reflect what was "agreed".

Ta - just making sure there isn't room for confusion when people read that as I'm sure many will be thinking April 2021 and assumed everything last year didn't happen so should be discounted.

[eek]

Ta - just making sure there isn't room for confusion when people read that as I'm sure many will be thinking April 2021 and assumed everything last year didn't happen so should be discounted.

I've updated my first response so it should be clearer.

[BenDover]

Hi everyone

There is this company called Umbrella Reclaim. They’re saying they can reclaim all employers NI up to 15 years by group legal action.

We were given a choice to be PAYE, PSC or umbrella. Umbrella was uplifted.

UR are saying they will take the agency - not umbrella companies - to court for negligence. Colleagues have paid them £99 upfront.

I was just wondering if anyone had been successful with this? All a bit fishy to me and they had a video on their Facebook where they said they’ve spoken to a tax expert QC and he’s 95% sure of success but the video has now been deleted. Obviously the thought of a 10k plus payout is very attractive. Just wondering if anyone had an info as could be a scam.

You can sign up for free so cannot be a scam and to my knowledge they only go back 6 years. Have a look at their website and it gives you all the information you need.

[lucyclarityumbrella]

There has been a fair amount of noise on LinkedIn about this. It caused one umbrella to be taken under, potentially with some of the contractors money too!

[morsing]

There has been a fair amount of noise on LinkedIn about this. It caused one umbrella to be taken under, potentially with some of the contractors money too!

Hi,

Umbrella companies wouldn't normally sit on people's money. And even if the umbrella company went under, the end client would just have to pay out though a different umbrella company or agency, you don't just get a free lunch.

I've just been on the phone to them, and was told the claim it off the insurance company, but the umbrella might still fold. Still considering whether to join, have left the first umbrella company, and might just leave my current one, so hopefully won't have any outstanding dues.

Thanks