Discuss Worked for an Umbrella Company, you could be owed some wedge! in the Electrical Forum area at ElectriciansForums.net

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derek

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There has been a recent development in a case that a pipe fitter claimed against an agency for the return of the margin fee, Employers NI deductions and holiday pay. His initial claim was rejected at an employment tribunal as they believed "he wasn't a worker" this was taken to appeal by Unite and the judgement was reversed.
The case has now been sent back to the employment tribunal to determine who was actually his employer and therefore potentially liable for the claimed money (around £2500).

Further details here:
Unite in groundbreaking victory against bogus self-employment - http://www.unitetheunion.org/news/unite-in-groundbreaking-victory-against-bogus-self-employment/
 
I remember when that rubbish all started in 2014, we'd before been scammed by having to pay an umbrella company £20 a week for the right to get paid as self-employed. When the law changed in april that year agencies said either start a limited company or you'll have to go PAYE to a umbrella company that wasn't your employer, therefore making you liable for employers NI and your employee NI. What an absolute con.
 
I used an umbrella company once, never again.
 
I started a job just before most of the Agencies started this scam.
Over a period of 14 weeks, I was out of pocket by £2000.
There was no change in the law, only a directive from HMRC to the Agencies to check their workers were being taxed correctly.
The Agencies were told that they would be liable for any tax and NI owed by workers who were paid and taxed as self employed,when they should be PAYE.
Most of the Agencies just decided everyone would be PAYE.
For the 14 weeks I was paid umbrella, I did not receive either a P45 or P60.
The Agency refused to accept that I was working unsupervised, the payroll company informed me that they would only do what the Agency instructed, despite the fact that I was paying them to process my pay, in effect employing them.
When I asked who was my employer, I was told “no one”.
The Payroll company was one that I had used over a number of years and had a signed contract with them to be paid CIS, I refused to sign a new contract to be paid PAYE, though they sent out 3 copies for me to sign.
At the end of the tax year, I just listed all they had deducted from me as CIS tax deducted at source.
The Agencies have used payroll companies for a number of years, their excuse being IR35 would mean they were employing us if they paid us direct.
The payroll companies are owned by the Agencies.
 
Personally I have been lucky enough to stay CIS when I have used agencies then I went Ltd so it hasn't affected me, but I have helped quite a few electrician's mates try to understand their payslips and it is definitely the more unskilled who are getting shafted across the construction industry (and not just the construction industry either from what I have read). Most agency sparks I know are Ltd to avoid the excessive amount of tax.
 

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