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Umbrella Compliance - Dangerous Companies

Umbrella Compliance Unfortunately, this industry has attracted some unscrupulous operatives who have given the industry as a whole a bad name. Please take on board that not all Umbrella Companies operate in such a fashion, but rather endeavour to provide an honest, professional and law abiding service.
Atlantic Umbrella is a certified member of The Association of Employment Management Companies (AEMC). Membership is only granted to applicants who have passed an exacting legal and compliance audit and demonstrated their credentials to the Association.

Below a list of things to watch out for and avoid:

  • Hidden Costs
    Some Umbrella Companies hide costs from their contractors by simply not informing the contractor of the full range of costs that exist.
  • Hidden Clauses
    Some Umbrella Companies hold contractors bound to them by inserting disguised 'early leaving penalties' in their employment contracts.
    Many Umbrella Companies exploit the expenses system, allowing their contractors to claim expenses that are blatantly not 'business related', thereby exposing themselves and the contractor to penalties and fines from HMRC.
  • Reckless Expense claiming
    When tendering for business, some Umbrella Companies will quote any level of expenses to win prospects over.
  • Money retention
    Some Umbrella Companies are slow to pay their contractors timeously, with the aim of earning interest on monies held on deposit. Some Umbrella Companies even have the audacity to withhold a percentage of funds claiming it to be for such things as 'holiday funds'.
    Atlantic Umbrella Company does not hide costs from it member contractors; does not have hidden clauses in its employment contracts, does not encourage the exploitation of its Expenses Dispensation, and does not withhold funds from its member contractors.
PAYE Umbrella Companies Vs MSCs
The term "Umbrella Company" is often used loosely, and generally speaking there are two types today. The first type is in effect a Composite Company which is a scheme that uses incorporation for tax avoidance purposes. These types are commonly referred to as Composite Umbrella's. Members of such schemes are advised to seek alternative contracting vehicles in light of the proposed MSC legislation that will almost invariably be enacted in April 2007. For more on Composites, please click here.
The second is the more tax complaint version, which are known more specifically as PAYE Umbrella's. Atlantic Umbrella is a PAYE Umbrella Company and has been since inception.