Umbrella Company Scams
There are many scams out there, including umbrella company scams, and with the evolution of the internet it is easier than ever for dodgy companies to reach a wider audience and portray themselves as ‘compliant’. These schemes may appear attractive but they can land you a lot of trouble with HMRC, along with expensive fines.
Umbrella Company UK is 100% HMRC compliant so your mind can be put to rest knowing that you are using a reputable compliant company. Here’s what you should know in order to avoid umbrella company scams:
Knowing the signs
Making yourself aware of umbrella company scams is vital when searching for an umbrella payroll provider. A red flag for you to easily spot and then avoid, is if an umbrella company is offering you 90% take-home pay. In this case the umbrella company is most likely illegitimate as it is impossible to legally take-home 90% of your earnings.
Another obvious sign to spot is if the company has statements such as ‘Tax avoidance Associates’ or ‘Take home more than traditional accountancy or umbrella services in the UK’. Being fully vigilant of the wording used when choosing your desired payroll provider is important as you don’t want to be seen by HMRC to be operating under these schemes.
HMRC typically wins 8 out of 10 cases that go to court, which is why it is likely you will be fined if you are caught using umbrella company scams.
What are the benefits of an umbrella company?
Even though there are plenty of offshore Umbrella Companies out there, there are also many compliant companies that are safe to use. Therefore, as long as you choose the right company you can benefit. Umbrella companies are ideal for many contractors because:
- They’re the easiest and most hassle-free way to operate as a contractor.
- There’s minimal administration – you are only required to submit your timesheets. The rest will be sorted for you, saving you time dealing with HMRC or payroll software.
- The sign up process is simple and can be completed the same day (within a couple hours).
- They’re an ideal option for contractors who: are on short-term contracts (under 3 months), are new to contracting or are unsure how long they will be contracting for.
- There should be no tie-in period. Leaving your umbrella company is simple if you wish to do so.
- There are no unpleasant surprises as there are no hidden joining or leaving fees for Umbrella Company UK.
- You are still entitled to employee benefits such as Statutory Sick Pay, Annual Leave, Maternity Pay and Paternity Pay.
- Insurances are inclusive: Umbrella Company UK provides £10 million Employers Liability Insurance, £10 million Public Liability Insurance and £5 million Professional Indemnity Insurance. This can be tailored for you if you require a higher level of insurance.
Why use Umbrella Company UK?
Here at Umbrella Company UK we are happy to give you a free consultation with one of our experts. We will run through the best option for you, allowing you to clearly see what your take-home pay will be – and we will help you avoid umbrella company scams. Please contact us on this page or give us a call on 01707 669023.