ytrehodluap:
Would this likely effect those who were never limited company but “encouraged to use an umbrella scheme” on a couple of occasions if been told (the agency) only pay through umbrella…
There are various ways where the worker has been ripped off, if you work through an Umbrella company it is normal for them to charge the Employer’s National Insurance, the Employee’s National Insurance, Pension and holiday and the fee to the worker.
HMRC have legislation and guidance notes on Companies/Agencies making people choose from a Preferred Supplier List as in, they are NOT allowed to do this. Making a worker pay a fee in order to be paid, again…WRONG! There are claims companies in place for workers to claim these monies back and I will be happy to point you in the right direction if you would like me to inbox you?
I have tried to provide information with the help of my friend so I hope this all makes sense and like he says, the way Temporary Workers are currently paid is changing and we may well be looking at the end of Umbrella companies as the Government is fed up of the horror stories about ordinary people getting ripped off.
I will add that not all Umbrella’s are bad, there are some decent ones out there. Agencies normally insist you use a preferred one because they receive a rebate eg. you pay £15 for you weekly timesheet and the Umbrella company gives the agency £5 of that (Again…WRONG!). It doesn’t sound a lot £5 per timesheet but when you have 1000 workers going through every week then that is £5000 a week for doing nothing but making workers use a particular payroll. There are many other scams being done with holiday pay as well but another time with all that.