All Umbrella Companies Are Equal is a resource site set up to address issues of non-compliance within the industry. We worked with HMRC to ensure that our published guidelines are compliant with current UK tax and employment legislation. Any partners who provide advice for the site, sit on a number of HMRC and Treasury consultative committees. This means that we are in a position to help shape future policy for the industry.
So why set up AUCAE?
Over the last 15 years, the umbrella sector has grown enormously thanks to an increased demand for flexible workers. Great news for contractors! This has also led to confusion surrounding take home pay, compliance and future tax liabilities.
Promises of 80%, 90% or even 95% take home pay are backed up with ‘opinions’ from QC’s. Guarantees that schemes are compliant with UK tax law without saying which law (guidance currently runs to around 14,000 pages!).
All Umbrella Companies Are Equal, or AUCAE as we have become known, was originally formed to support compliant umbrella companies. To work with HMRC and the Treasury to create a level playing field for umbrella companies and to provide a valuable resource for both recruiters and contractors. However, as new legislation comes into force regularly, we decided that it would be advisable to provide a comprehensive resource for contractors. That way we help you to make an educated and informed decision on which umbrella company to choose.
Tax Avoidance Scheme Providers
Please note there are tax avoidance scheme providers, who label themselves as umbrella companies, who put contractors and recruiters at risk of financial penalties from HMRC; their marketing targets the unwary and is often slick and seemingly credible. HMRC are fighting a constant battle against tax avoidance but, conversely, they will not approve a compliant umbrella company. So it is left to the industry to advise wherever possible.
So AUCAE have carefully put together a set of “Guidelines” that all compliant umbrella companies should work to in order to satisfy HMRC.
We have worked alongside HMRC to produce an “Umbrella Compliance Manual” to clarify what constitutes a compliant umbrella company.
Recognised by The Office of Tax Simplification Committee to advise the Chancellor with regards to the complexities of contractor taxes.
An up to date resource for umbrella’s, agencies and contractor’s on the basics and legal aspects that affect the industry.