Advice on using an umbrella company please

meema

NicolaGrace wrote: »

I have started working for a company and i get paid via payjump, they have sent me a payslip but have also advised on an umberella company. I have no idea, even after reading the above posts on what i need to do. Can anyone recommend an umberella company, i am worried that i will be charged with a huge tax bill!!

Hi,

I'm new to this Umbrella company stuff too. I'm still trying to get my head around it but at the moment my umbrella company is Titan (http://www.titansolutions.co.uk/). They've been very efficient and straightforward so far. They're also very fast at responding to emails etc.

RootieTootie

Hi there,

I similarly recently joined an Umbrella Company.

I have an issue currently regarding their lack of transparency about the NIERS (Employers NIs) which they filter down to their freelancers. I specifically called the umbrella company I'm with the find out what service they provide and what the cost implications would be compared to working directly through my creative agency as an employer (I'm a sole trader and a lot don't accept this status anymore). They did not mention the NIERs over t he phone, they neglected (and would seem deliberately omitted) to send me any confirming information on the NIER costs on email (also admitting to me on email that they forgot to send that information), even in their welcome pack that page was omitted.

I would like to know if 1/ it is legal for them to filter down that cost to freelancer - is it HMRC approved

and 2/ Do I have a legal case seeing as they deliberately did not disclose this information to me before I agreed to work with them?

Thank you in advance.

InsideInsurance

You are picking one point out but you need to share everything they said and not just one point they didnt.

So presumably you are offered a contract for £300 per day by your recruitment agency. Have they shared with your what their contract with their client says they get? They are probably billing the client £360 a day and then paying you £300 per day out of it. When you become an employee of an umbrella then there is another link in the chain. The contract becomes between the agent and the umbrella so they get £300 per day and they then pay you a salary under PAYE.

Your contract with them should outline what your pay is going to be. They may say things in an explicit or implicit way in that contract as long as it covers the necessary. Clearly they are never going to give you £300 a day as they are a business and must make a profit plus as your employer they are legally obliged to pay things like Employers Liability Insurance and Employers National Insurance which they wont do out of the goodness of their heart but from the £300/day they receive via your work.