You have probably discussed this subject endlessly, however if someone with experience of Umbrella could advise?
I recently joined up with an agency to work LGV C, 7.5 tonne or van work.
After a week I began to get work, however I received an email from an Umbrella Company to sign up with them including bank details, a contract of employment and an agreement to sign for fees to pay which seem pretty steep.
Seems that they will be my employer, not the agency.
It appears that I dont have a choice on the form to opt out. Would it be best to move on and do the vast majority of agencies now go through Umbrella Companies? Seems tough when you dont know the level of earnings ones going to make every week. 
An agency tried to push this on me, a big con to rip more money off you, you’re better off on the books with the agency, don’t do it!!
Roadbrit59:
It appears that I dont have a choice on the form to opt out. Would it be best to move on and do the vast majority of agencies now go through Umbrella Companies? Seems tough when you dont know the level of earnings ones going to make every week.
Yeah you do, don’t sign it, phone up the company and say its illegal because HMRC treat it as disguised employment. I’ve done agency work for most of the past 20 years, never ever been through umbrella on one. I’ve had the option if I wanted to do it self employed but it wasn’t forced on me, The agency I’m with say they do self employed however they don’t run their own umbrella, its up to you to sort it all out, and when I signed up the guy pointed out the PAYE drivers got offered work first. Then again they pay the self employed drivers more than just a quid an hour over PAYE so they’re not doing it to save money.
Any agency that forces you to sign up to one of these umbrella schemes isn’t one you want to be working for.
I just had the same thing happen.
I’m 100% new to the industry and just passed my class one. I have driven trucks but never on a tacho (army) so I know it’s agency work for now until I have experience.
Signed up to my first agency on Friday and at the end of the registration they put me on the phone to their payroll who signed me up into their umbrella scheme, wen e said I had to pay £10 if I work less than 30hrs and £30 if I work over 30hrs alarm bells started ringing so I asked him if I couldn’t just be paid normally, he told me I could go ltd but I haven’t got a clue what that entails so I accepted this was normal and signed up, they sold it to me by saying I save money on tax and NI.
From what I can work out as long as I declare all of my fuel getting to and from whatever job I am put on then it doesn’t actually change my pay that much, it’s when you don’t declare stuff like that is when you get ripped off.
Like I said I’m completely naive and in experienced so to be honest I’m taking it on the chin and learning as I go, luckily for me I’m still employed full time and only driving at weekend or on any holiday periods so the money isn’t as important as gaining the experience. As long as everything is legal it should be ok.
I plan to phone them up on Monday and ask for all the details in an email, that way it’s in writing and you can make your mind up before taking on any work.
It worries me that so many people talk about how this is a scam and a con yet so far everyone I have talked to seems to say agencies use umbrella company’s. And you have a choice to walk away and say no, except when your a newbie and don’t have any experience it’s not something you can just walk away from without gaining all the info.
Hopefully it all comes through on Monday and everything is all legal without ripping me off too much.
Umbrella was good to use untill the budget changes a few months ago where you cant claim expenses anymore. Now your just paying for someone to do your payroll. PAYE direct with agency is only way now.
Umbrella was never good it was just a top off so agencies could load any risk on to drivers and make more money out of them it was never really worth doing
Thank you for very sound advice. Getting to learn the hard way. Once bitten twice shy. Will get on my bike again and look for legit reputable agencies and better still try to get employment with a firm. There must be some out there.
Hopefully a lot of agencies will now start to struggle with attracting drivers. I know quite a few insist on you either being LTD or under an umbrella company, but with the recent changes happening hopefully most drivers will wise up and either take full time permanent positions or only take agency work if they do PAYE.
eagerbeaver:
Hopefully a lot of agencies will now start to struggle with attracting drivers. I know quite a few insist on you either being LTD or under an umbrella company, but with the recent changes happening hopefully most drivers will wise up and either take full time permanent positions or only take agency work if they do PAYE.
Sadly mate I just think agencies will/do just offer an obligatory PAYE rate that’s very unattractive compared to an Umbrella or Ltd…
If they don’t want the hassle of the admin, they’ll want to make it worth their while when forced into it!
Until there are rules about the relations of the 2 different pay/employment rates, it won’t change anything…
It’s a fair point Beez, although dependant on the PAYE rate offered and the amount of agency drivers available, an element of agency warfare may develop.
This actually could be a reasonably good thing within the limping community as some of the lower payers could go out of business if they cant attract enough drivers. Clients have plenty agencies available currently, so if you cant service your client, somebody else will.
You’re forgetting that most limpers are bone idle mate. Plus a lot will just carry on with the same old dross, thinking it’s the best thing since sliced bread as that’s what their agency tells them to think, and they will know no different, as they have no friends! 
OMG, AN EPIPHANY!!! 
Since when has £1 per hr extra been considered a good rate I charge my rates direct even agencies on the few occasions they ring up I tell them my rate they say we pay this I tell them they are ringing me for work and will pay my rate if they want me