Umbrella Company Contractor Eligability

daKlone

Thanks for your input.

I have worked both as a one man band Ltd company and an umbrella employee and am fully aware of the differences; it is not the same at all.

The words 'bonus' or 'commission' in this context are not what you might think they are. They are not some sort of tax dodge. Every penny of my pay is subject to PAYE tax and NI contributions, just like any other employee.

The difference is that my umbrella company only guarantees to pay me NMW for each hour worked, when I submit a timesheet. When, and only when, their invoice to the end-customer is paid do I get the remainder of my actual rate for each hour worked. This is what they call a 'bonus' or 'commission' on my pay slip.

It is not a performance-related bonus or commission on sales, it is the remainder of my basic hourly rate.

That's why it's such an issue.

unforeseen

I know it's not the same But you are in exactly the same place as Ltd Co directors. You will only get cjrs on your basic. 

daKlone

As I illustrated above that's all I want, my basic hourly rate.

daKlone

Well I have what seems to be the final word from my umbrella company:

They are NOT furloughing ANY employees, for the following reasons:

1) They have to give credit for annual leave accrued during the furlough period, which they will not get from the Govt.
2) Whilst they don't have to pay Employer's NI, they still have to pay Apprenticeship Levy, which they will not get from the Govt.
3) They still have the same overheads, which they will not get from the Govt.

These are all costs that they have to bear which are unfunded, either by the client (end customer), the employee (me) or the Govt. so it's hardly surprising they're not doing it.

Ourboy11

Has your umbrella company furloughed you? 

mrssd

daKlone:  Have you seen this?  Interesting info re calculations etc.:
https://www.fcsa.org.uk/cjrs-further-updates-to-government-guidance/

daKlone

Ourboy11 said:

Has your umbrella company furloughed you? 

Sadly not...like many I am 'running on empty' for the foreseeable future

daKlone

mrssd said:

daKlone:  Have you seen this?  Interesting info re calculations etc.:
https://www.fcsa.org.uk/cjrs-further-updates-to-government-guidance/

I hadn't, thank you for the pointer.

I don't see anything there that materially changes the position though sadly. Martin's statement from HMRC might carry some weight though, I'm not sure if Julia is aware of it.

Ourboy11

I hate the fact that we have literally been robbed by the umbrella company's every week then when we need it most they are going to deny us a government scheme that basciall the entire country is entitled to.

Have you got official confirmation that they are not letting you be furlough as mine keep giving me false hope that i will be but feels like im being fobbed off. 

daKlone

Yes, I have it in writing.

As I tihnk I said on your own thread, it might be that they are trying to fob you off but bear in mind that there is a lot of confusion out there (hence so many threads here!), and employers have to be careful as they could lose a lot of money if they get it wrong. They might just be being honest and are trying to figure out what they can and can't do, what it'll cost them etc.

I'd try not to let your frustration seep out into your dealings with them; try to keep clam and be reasonable with them.