When an umbrella company is NOT an umbrella company!
Choosing an umbrella company can be confusing, especially when you search the internet and a long list of so-called umbrella companies appear, how are you to know the difference? How do you know that it isn’t a company disguised as an umbrella company?
So do you call and they spend valuable time convincing you that they are compliant, that you will be safe and sound if you work through them. Do they say “it’s ok, we are QC approved”?
We all know that the sale pitch can be amazing and that the offer of a higher take home can be the hook they need to get you onboard, however is it really worth it?
The simple answer is NO. If they are operating in a non-compliant way (please take a look at the guidelines) and it is your personal taxes that are being played with, then it will be you that HMRC come looking for.
Albeit any tax savings you may have had via the company, could still be due, and if HMRC find that there was tax avoidance or evasion involved, then firstly you could be looking at tax payments and secondly, fines on top of these!
All of a sudden the compliant brolly offering you take home of 52-56% take home as a 40% tax payer is not looking so bad after all!
Potential Tax Avoidance Schemes
We have been made aware that the following list of companies whose business model or operations do not sit within the guidelines shown on the Umbrella Company Industry Guidelines, however if you are able to provide details to the contrary then we would be very interested to hear from you.
Ace Pay Solutions
AM Limited (AML)
Anderson Group Associate Services
BFB Umbrella (Big Fat Bhudda Ltd)
Cascade Management Solutions Ltd
Contractor Payroll Solutions
Contractor Tax Solution
Cornhill Wealth Management
Eagle Umbrella Payroll
Engineering Contractor Services Ltd
Majestic Wealth Ltd
Maximise Your Pay
Montpelier Tax Consultants
Onshore Tax Solutions
Opus Management Ltd
PayeCompare Payroll (UK) Ltd
PMMC (UK) Ltd
QIS Limited (Quay Income Solutions)
Shield Contract Services (UK) Ltd
Target Umbrella Limited
Intelligent Tax Solutions
The Pay Club
Universal Payroll Services UK
Contract Partners UK
Vantage Point Strategies
If you come across a company that you think may be operating as a tax avoidance scheme, or as a company disguised as an umbrella company, then we would love to hear from you. However you can also report them direct to HMRC by visiting this link; Report Tax Avoidance Schemes.