Umbrella only recruitment
Discussion
CCCS said:
I've noticed that all the jobs with one agency say "This is only available to individuals working via an Umbrella company, we can assist you with this."
I don't have an umbrella company, if I ask the agency to help me with this are there any downsides?
You'll need to pick one from the agencies approved list usually. Personal experience is that they are a much of a muchness, just confirm thier charges and how quick they pay out if you have a choice. Using one that the agency has a relationship with also makes the on-boarding process easier.I don't have an umbrella company, if I ask the agency to help me with this are there any downsides?
The real downside is you won't take home as much as you would with a well set up limited company for the same day rate, the upside is that it is pretty much stress free in my experience and rates will often reflect the added costs anyway nowadays.
This is the same policy at my client co. Blanket 'inside IR35 policy'
They have one tied recruitment agency, who have a shortlist of Umbrella Cos to choose from.
Main question to ask the agency is whether you can swap Umbrella Cos if the one you go with proves no good.
The main concerns are on frequency of payment and how far in arrears and pensions admin.
We had an issue at my client co in that the agency (a big name, but in financial difficulties) used to pay one week in arrears, so for this week's work I would be paid by Wednesday of next week, assuming I put in a timesheet on Friday.
They changed this to monthly in arrears - massive uproar from all contractors involved, as it puts an entire month's money at risk of the agency or the brolly going under. This has happened to three agencies during my (long) tenure at this client co, so is something to be wary of.
Long story short: client co ditched that agency for one on a more secure financial footing, we now get paid weekly in arrears, as before.
I work through Orange Genie. Other than a couple of minor blips (sorted very quickly) when they migrated to a new software system recently they are otherwise very good, reliable, pay on time and fees are reasonable. I've no other connection than being a satisfied punter for the last three years.
They have one tied recruitment agency, who have a shortlist of Umbrella Cos to choose from.
Main question to ask the agency is whether you can swap Umbrella Cos if the one you go with proves no good.
The main concerns are on frequency of payment and how far in arrears and pensions admin.
We had an issue at my client co in that the agency (a big name, but in financial difficulties) used to pay one week in arrears, so for this week's work I would be paid by Wednesday of next week, assuming I put in a timesheet on Friday.
They changed this to monthly in arrears - massive uproar from all contractors involved, as it puts an entire month's money at risk of the agency or the brolly going under. This has happened to three agencies during my (long) tenure at this client co, so is something to be wary of.
Long story short: client co ditched that agency for one on a more secure financial footing, we now get paid weekly in arrears, as before.
I work through Orange Genie. Other than a couple of minor blips (sorted very quickly) when they migrated to a new software system recently they are otherwise very good, reliable, pay on time and fees are reasonable. I've no other connection than being a satisfied punter for the last three years.
Edited by PurpleTurtle on Wednesday 21st September 12:32
Greenmantle said:
do your own research and pick your own umbrella company - obviously must belong to the FCSA and have a look at how active they have been in this arena. eg contractoruk & apsco involvement - many others.
Can't say I agree on the FCSA comment - Orange Genie just got suspended by the FCSA for skimming, Liquid Friday have been called out for doing something similar to the tune of 1.5%, FCSA removed DNS but didn't announce why, Exchequer Solutions were taken to court by HMRC for £11m unpaid tax. simonwhite2000 said:
Greenmantle said:
do your own research and pick your own umbrella company - obviously must belong to the FCSA and have a look at how active they have been in this arena. eg contractoruk & apsco involvement - many others.
Can't say I agree on the FCSA comment - Orange Genie just got suspended by the FCSA for skimming, Liquid Friday have been called out for doing something similar to the tune of 1.5%, FCSA removed DNS but didn't announce why, Exchequer Solutions were taken to court by HMRC for £11m unpaid tax. They've also failed to respond to two reminders about an introducer's fee they owe me for signing up a colleague.
I'm gonna jump ship. What a bunch of absolute shysters!
https://contractorvoice.org/orange-genie-salary-sk...
Edited by PurpleTurtle on Tuesday 15th November 22:51
PurpleTurtle said:
simonwhite2000 said:
Greenmantle said:
do your own research and pick your own umbrella company - obviously must belong to the FCSA and have a look at how active they have been in this arena. eg contractoruk & apsco involvement - many others.
Can't say I agree on the FCSA comment - Orange Genie just got suspended by the FCSA for skimming, Liquid Friday have been called out for doing something similar to the tune of 1.5%, FCSA removed DNS but didn't announce why, Exchequer Solutions were taken to court by HMRC for £11m unpaid tax. They've also failed to respond to two reminders about an introducer's fee they owe me for signing up a colleague.
I'm gonna jump ship. What a bunch of absolute shysters!
https://contractorvoice.org/orange-genie-salary-sk...
Edited by PurpleTurtle on Tuesday 15th November 22:51
Blown2CV said:
TCX said:
Yes,they'll suggest lol,a company their in cahoots with,I've always found plenty of opportunities without parasite,err umbrella route
they don't make anything from that arrangement though and you can just choose your own.TCX said:
Blown2CV said:
TCX said:
Yes,they'll suggest lol,a company their in cahoots with,I've always found plenty of opportunities without parasite,err umbrella route
they don't make anything from that arrangement though and you can just choose your own.CCCS said:
I've noticed that all the jobs with one agency say "This is only available to individuals working via an Umbrella company, we can assist you with this."
I don't have an umbrella company, if I ask the agency to help me with this are there any downsides?
Get a worked example of what you will actually be taking home per day from that day rate. I don't have an umbrella company, if I ask the agency to help me with this are there any downsides?
An Umbrella Co will deduct
Employers National Insurance - around 13.5%
Apprenticeship Levy - around 0.5%
Employee National Insurance
PAYE Tax.
They will also make a deduction for your annual leave pot.
Roughly speaking, you'll end up with half your day rate home with you.
A good way to offset the PAYE tax is to push heavily in to your pension. Some Umbrella Co's will do that directly to your own pension, others insist it goes in to their preferred company.
Gassing Station | Jobs & Employment Matters | Top of Page | What's New | My Stuff