Umbrella Companies advice?

emmalouisemurray

No they don't.

SarEl

agrinnall wrote: »

Does the company (rather than the Umbrella company) have any employees itself? If it does then I can see no reason why you shouldn't also be employed directly instead of through the Umbrella company. I don't know for sure but I suspect HMRC would not be keen on the arrangement you have described when in reality you are a permanent employee of the company.

I am in agreement. The OP is not self-employed and is not a temp - this arrangement appears to be highly irregular and I do not believe it meets the HMRC guidelines.

OP, are you aware that apart from the fact that HMRC are unlikely to be at all happy about this arrangement were they to find out, that you have no employment rights in this arrangement because in law you would not be classed as an employee?

anamenottaken

SarEl wrote: »

I am in agreement. The OP is not self-employed and is not a temp - this arrangement appears to be highly irregular and I do not believe it meets the HMRC guidelines.

OP, are you aware that apart from the fact that HMRC are unlikely to be at all happy about this arrangement were they to find out, that you have no employment rights in this arrangement because in law you would not be classed as an employee?

I think the OP would be classed, legitimately for HMRC, as an employee of the umbrella company. That's why employer NI contributions are deducted. Surely any employment rights the OP would have would be with the umbrella company. (In fact this wouldn't amount to very much - no work available because the client doesn't want the services of the OP any more = no pay.)

SarEl

anamenottaken wrote: »

I think the OP would be classed, legitimately for HMRC, as an employee of the umbrella company. That's why employer NI contributions are deducted. Surely any employment rights the OP would have would be with the umbrella company. (In fact this wouldn't amount to very much - no work available because the client doesn't want the services of the OP any more = no pay.)

You do not accrue employee rights as an employee of an umbrella company - you "pay for your own holiday", you cannot claim unfair dismissal, there is no redundancy.... The OP is not a contractor, they are (or should be) an employee of the "client". This is simply a cheapskate way to get out of being a responsible employer.

anamenottaken

SarEl wrote: »

You do not accrue employee rights as an employee of an umbrella company - you "pay for your own holiday", you cannot claim unfair dismissal, there is no redundancy.... The OP is not a contractor, they are (or should be) an employee of the "client". This is simply a cheapskate way to get out of being a responsible employer.[/QUOTE]

I agree with the final sentence, but the OP would still be an employee of the umbrella company.

The umbrella company should be withholding part of the pay to pay later as 12.07% "holiday pay" when there is a bank holiday or other holiday is taken.

SarEl

Yes, in other words the employee is paying for their own holiday out of the wages that they earn.

If this is a permanant job then it is not compliant with the HMRC guidance for umbrella companies, which are intended for contractors. It is no wonder that HMRC are cracking down on them if this is the use they are put to.