"Gross Share Payments" from Umbrella Companies aka Enhanced Pay Rate

[TAOC]

Hi All.

Firstly, apologies if this has been answered already - I did look and search around, but couldn't find anything quite similar.

I'm doing an inside IR35 contract which requires an umbrella company - so I used one of the brokers (https://comparetheumbrella.co.uk/ - I naively thought it would be like the travel insurance brokers, listing all the offers, but instead, someone called me).

The guy offered me regular rates, nothing spectacular, then an "enhanced" rate comprised of 2 payments per month, a regular but reduced PAYE, then a "Gross Share Payment", which, per month, works out to be significantly more.

I asked the guy "Would I not have to pay tax on that gross share payment at some point, or is it all fine and its all mine and nothign to worry about?", in which he stated the latter.

I also asked which umbrella company it was he was quoting these numbers from and he didnt give me a straight answer, but just mentioned something vaguely relevant about being FCSA compliant.

He then emailed the figures to me, maybe worth mentioning from what seems a different company - pslcentre.com.

Is this the thing HMRC has been reporting about i.e. what they are considering to be tax avoidance schemes? Or is it a legitimate model of paying a contractor?

Does anyone have experience with this type of payment?

All input is really appreciated, thanks everyone.

[eek]

Oh there is an entire forum discussing similar schemes - trouble is it's not in the Umbrella section it's in the HMRC Scheme Enquiries one because believe me this is a scheme.

You started off with a comparison / seller of tax avoidance schemes because there is not enough money for an umbrella to directly sell to workers

You then have a second comparison site with a Liverpool number (and why when I see a Liverpool number can I guess the scheme type) which just tells me it's all related.

As for anyone running a scheme being an FCSA member - I doubt it but Chris Bryce will handle that far better than I can.

[cojak]

Don’t bother returning his calls unless you’re a masochist because you’ll be in for a world of pain and poverty if you do.

[eek]

Hi All.

Is this the thing HMRC has been reporting about i.e. what they are considering to be tax avoidance schemes? Or is it a legitimate model of paying a contractor?

Oh I missed this bit

HMRC believe everyone is an employee and should be being paid via PAYE with every penny you received going through PAYE first.

I would take a step back and say that unless the money is going to your limited company* then you should be being paid via PAYE.

* and even then you should be being paid via PAYE and dividends you definitely should not be sending the money to a third party (Procorre for 1 example) who then play similar games.

Finally if you want to reduce the tax you pay - find an umbrella that does Salary Sacrifice (such as Clarity) and send as much as you can afford into your pension pot.

[WTFH]

This thread has got me digging today.

You started off with a comparison / seller of tax avoidance schemes because there is not enough money for an umbrella to directly sell to workers

Compare the Umbrella is a trading name of Masterpixel Media.
Anyone want to guess where they are based?
Clue: https://asphaltrallying.com/2019/02/...dline-sponsor/
You search for their website and get redirected here: https://myumbrellahub.co.uk (based in Dublin)
You search on LinkedIn and they are based here: https://www.linkedin.com/company/mas...l-media/about/ (with an address of 43 Circular Road, Douglas, Isle of Man IM1 1AD)

On CoHo, there's no record of Masterpixel Media (why would there be, they are not a UK company?)
But there is a record for Compare the Umbrella, a now dissolved company whose parent company address is... 2nd Floor Office, St James's Chambers, 65 Athol Street, Douglas, Isle Of Man, IM1 1JE

So, before we even get to the "umbrella" they have recommended, you need to go to your nearest JD Sports, get yourself a pair of Nikes and run away as fast as you can.

[cojak]

Comparison and broker websites marketing umbrella companies are not always what they seem

[fulcon]

I also did some digging, and if you check CoHo for PSL Centre Ltd, which is linked in OP's post, the current director of PSL Centre Ltd. is a former director of Paystone Services Ltd.

[lucyclarityumbrella]

Compare the Umbrella is a trading name of Masterpixel Media.
Anyone want to guess where they are based?

And guess what they took logo's from umbrella companies and put them on the site without permission to make it look more authentic!