Fcsa Articles

Umbrella company cloning makes national headlines

The issue of umbrella company cloning has been covered by a national newspaper for the first time. It’s hoped the national news coverage could focus attention on an increasingly worrying issue and force Companies House and the government to act.

Earlier this week, The Mirror covered the ‘mass cloning’ of umbrella payroll companies and blamed Companies House for letting it happen.

Sunak’s ‘Missed Opportunity’ to Police Rogue Umbrella Companies
marketing | 5 November 2021
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Chancellor Rishi Sunak has missed a chance to regulate umbrella companies after failing to mention it in his Autumn Budget.

The Freelancer and Contractor Services Association (FCSA), which represents compliant umbrella companies, expressed disappointment at the government’s silence on an important issue to protect temporary workers.  

How to choose a compliant umbrella company
marketing | 26 March 2021
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Stricter IR35 rules mean that many limited company contractors are looking to switch to an umbrella working model.

Joining an umbrella company means that you pay tax at the same level as an ‘inside IR35’ limited company contractor, while also benefiting from holiday and sick pay entitlement.

When you choose an umbrella company, it’s imperative that you choose a compliant provider. Not doing your research at an early stage could cost you in the long run.

Umbrella compliance has hit headlines recently after HMRC warned contractors about a number of schemes offering higher than average rates of take home pay.

Umbrella contractors, High paid contractors, Umbrella working, FCSA, Umbrella vs Limited company,

New research from the Freelancer and Contractor Service Association (FCSA) shows that umbrella working is being adopted by more and more high-end professionals in a range of sectors.

The research, which compares umbrella working in 2015 and 2017, also found that umbrella employees are enjoying better rates of pay and longer, more stable assignments.

In 2017, the FCSA found that 73% of umbrella workers were earning more than £15 per hour, compared with 53% in 2015.

The average length of an assignment more than doubled in two years from 14 weeks in 2015 to 29 weeks this year. The average length of employment with the umbrella company also increased from 30 weeks to 46 weeks. 

marketing | 26 September 2016
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Umbrella.co.uk are delighted to announce that Nicholas Holmes, CEO of Umbrella.co.uk, has been elected to the Board of the FCSA (Freelancer & Contractor Services Association).

Umbrella.co.uk is an associate member of the FCSA which is now the largest trade body for compliance in our sector, and has very stringent criteria for membership.

Time to ‘name and shame’ non-compliant umbrellas?

The new CEO of the Freelancer and Contractor Services Association (FCSA) hinted that his organisation could start ‘naming and shaming’ non-compliant umbrella companies in a bid to boost standards.

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.

comparing umbrella companies

New HMRC research has revealed that some of the most attractive ‘umbrella’ deals on comparison and broker websites aren’t tax-compliant, meaning they could land you with a big bill further down the line.

The companies that come out on top of these comparison listings usually boast unbelievable take home pay figures, together with other ‘too good to be true’ advantages. In reality, the only way umbrella companies can achieve these ‘enhanced’ or ‘advanced’ rates is through tax avoidance.

Remember, YOU are responsible for paying the right amount of tax. The tax man will come after YOU if you try and cheat the system. And if a deal sounds too good to be true, YOU know that it probably is.

At Umbrella.co.uk, we’re proud of our track record of protecting clients through compliance. We’re accredited by the FCSA and APSCo, two of the largest and most prestigious staffing and employment bodies. We have also been approved as business partners by the Recruitment and Employment Confederation (REC).

FCSA blasts public sector IR35 changes
marketing | 10 February 2017
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A professional contractor employment services body has been scathing in its criticism of the changes to the off-payroll public sector changes, due to take effect in less than two months.

The Freelancer & Contractor Services Association (FCSA), which represents more than 110,000 contractors in the flexible workforce sector, said that the changes raise problems associated with accountancy, points of law and practicality. 

marketing | 22 August 2016
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Industry insiders have responded negatively to a consultation on the government’s latest IR35 proposal.

The proposal would see public sector organisations made responsible for determining the IR35 status of a contractor. Practically, this means that many more Personal Service Company contractors will be caught out by the IR35 legislation.

The contractors would be forced to pay tax as if they were traditional full-time employees, without enjoying any of the same employment rights and benefits.

Many inside and outside the industry see this as unfair. There is also a large amount of concern about some of the proposal’s unintended consequences.

The Freelancer & Contractor Services Association (FCSA) warned against leaving the decision to parties that will struggle to make an accurate IR35 assessment. 

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