Calls to regulate ‘cartel’ umbrella companies

Industry experts have called on the government to regulate the ‘cartel-like’ umbrella market.

Former senior policy advisor to the Treasury, Rebecca Seeley Harris, and offpayroll.org founder James Poyser argue that urgent action is needed to stop scandalous companies ripping off workers and bringing the sector into disrepute. 

How to Avoid Tax Dodging Mini Umbrella Companies

Most umbrella companies that you’ll see online are legitimate businesses that pay the correct amount of tax and comply with relevant employment legislation.

Unfortunately, the sector is brought into disrepute by a small group of illegitimate companies that seek to defraud contractors and the state. It seems the latest attempt at doing this is with so-called ‘mini umbrella companies’.

A recent BBC investigation found that around 48,000 mini umbrella companies have been created in the UK in the last five years.

Reporting a non-compliant umbrella company

Most umbrella companies meet all tax and labour laws and have nothing but good intentions when it comes to looking after their employees.

Unfortunately, whether it’s through inability or corruption, some umbrellas don’t meet the standards that employees expect of them.

If you suspect that an umbrella company is acting illegally or unethically, you should report them. We explain why and how you can do this below.

Benefits of contracting vs permanent employment

Are you looking for a change? Each year, thousands of Brits start contracting to get them out of a slump in their work or home life.

For many full-time employees, contracting is the answer to numerous issues with their work and lifestyle. It lets people use skills and experiences developed as an employee and apply them on their own terms - at a time and place to suit.

To be sure, contracting isn’t for everyone. There’s definitely some downsides that come from trying to make it under your own steam, but we think the benefits outweigh the downsides, especially when you use an umbrella company like Umbrella.co.uk