Umbrella Company Loses £11m Tax Tribunal

A tax tribunal has concluded that an umbrella company has a potential £11m liability due to their overarching contract not being one of employment.  The case concerns Exchequer Solutions Limited which operates primarily in the construction industry.  The tribunal focuses on tax deductible travel and subsistence expenses that were paid to their umbrella workers in […]

Holiday Pay Campaign For Redress Gathers Pace

Our friends over at Contractor Voice have stepped up their campaign against holiday pay being unfairly retained from temporary and contract workers by their agency or umbrella company.  They are in talks with specialist lawyers to seek financial redress for affected workers, and formal legal action seems inevitable.  The legal experts have confirmed that the […]

041 Why do recruitment agencies have lists of preferred umbrellas?

Temporary workers and contractors are often required to choose an umbrella from a preferred supplier list (PSL) operated by their recruitment agency.  Some workers feel this restricts their choice, however many recruitment firms operate PSLs that are in workers’ best interests.  We wanted to learn more about PSLs from the agency perspective so chatted to […]

037 Why We Should Abolish Umbrella Preferred Supplier Lists

Temporary workers and contractors will often be required to be paid via an umbrella company and often recruitment agencies operate a preferred supplier list (PSL) of umbrella companies that their worker can choose from.  In this episode, IWORK’s founder, Julia Kermode, discusses why she thinks umbrella PSLs should be abolished.  She has proposed this as […]

Important Holiday Pay Development

The Court of Appeal has ruled that a worker can only lose the right to take paid leave within the holiday year when: The employer can show it specifically and transparently gave the worker the opportunity to take paid annual leave; The employer encouraged the worker to take paid annual leave; The employer informed the […]

Time To Get Rid Of Umbrella Preferred Supplier Lists?

In the wake of recent cyber-attacks, I was asked by a journalist last week what I would recommend to contractors who are considering changing their umbrella, so I found myself thinking about this properly for the first time in ages.  Whereas previously my answer would have been to look for accreditation, it is clear to […]

HMRC Warns Some Umbrellas Are Actually Tax Avoidance Schemes

According to an announcement issued by HMRC, some umbrellas are non-compliant and operate tax avoidance schemes; workers engaged by such firms risk huge future tax bills (e.g. the Loan Charge), whilst recruitment businesses engaging such umbrellas risk reputational as well as financial damage. According to HMRC, these schemes involve untaxed payments being made to workers […]

Working Through An Umbrella Company? – 10 key phrases to understand

If you are new to umbrella working, you may be hearing lots of new words or phrases for the first time and not know what they mean.  Here, Meredith McCammond from the Low Incomes Tax Reform Group (LITRG) explains some of the terminology used and provides you with a few practical tips on the way, […]

Crawford Temple from Professional Passport Discusses Holiday Pay Issues

Earlier this year allegations surfaced that some umbrella firms are wrongly withholding holiday pay from contractors.  The story was highlighted by BBC Radio 4’s Moneybox programme and its impact was felt throughout the entire industry as all umbrellas came under suspicion for duping contractors out of money due to them. Crawford Temple is CEO of […]