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Super Spammer
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 Posted: 16:23 - 26 Nov 2019  Post subject: |
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| Lord Percy wrote: | The umbrella company is Churchill Knight, they seem to be mostly well reviewed: https://uk.trustpilot.com/review/www.churchill-knight.co.uk
As for benefits, I just filled out their registration form. Part of it stated I could arrange to set aside some of my daily rate such that I can take days off and still be paid in full for it. I opted out of that. I'd rather just have a day off and know plainly that that's a day of no income.
After 12 months there's a pension scheme too, but at that point I'll have finished the agreement with the recruiter and can shift over to a permanent full time contract at a fair salary with the company I'm working for.
I suspect this umbrella company has various setups for the way their members/"employees" want to work. I'm quite happy to go with a simple daily rate where 1 day = £X. It's how I've been doing it in Chinachinachina for the past couple of years anyway. |
It just seems odd as they're treating you as an employee to dodge IR35, but not following employment law with the way they treat you and are treating you as a contractor when it comes to employment rights.
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Lord Percy
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| Posted: 02:34 - 27 Nov 2019 Post subject: |
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It definitely does seem a little bit odd. I wonder if it's because the company and the recruiter previously had an arrangement where they would hire programmers for shorter jobs, which is surely the right situation for the umbrella company scenario. I think maybe I'm just being placed at the extreme end of that.
The recruiter said that this is the last time they're going to do this arrangement with new hires. This further cements the possibly that it was a more ad-hoc 'as needed' hiring arrangement before.
Anyway, meh, got a new job, massive pay rise, this raging lefty is finally leaving socialist paradise to earn some real money 
https://media.tenor.com/images/1ea1ce9bfb802739d1209bcac5f0b9e6/tenor.gif
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Super Spammer
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| Posted: 10:42 - 27 Nov 2019 Post subject: |
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| Lord Percy wrote: | It definitely does seem a little bit odd. I wonder if it's because the company and the recruiter previously had an arrangement where they would hire programmers for shorter jobs, which is surely the right situation for the umbrella company scenario. I think maybe I'm just being placed at the extreme end of that.
The recruiter said that this is the last time they're going to do this arrangement with new hires. This further cements the possibly that it was a more ad-hoc 'as needed' hiring arrangement before.
Anyway, meh, got a new job, massive pay rise, this raging lefty is finally leaving socialist paradise to earn some real money
https://media.tenor.com/images/1ea1ce9bfb802739d1209bcac5f0b9e6/tenor.gif |
Or HMRC have wised up to it. The umbrella company is basically taking a cut of your contractor fee from the employer just to do your PAYE returns as an employee to keep you out of IR35, but nobody is giving you any employment rights because to the end customer, you're just a contractor from the umbrella company .
I take it you won't need to do a Self Assessment under this arrangement? This might be worth confirming, but as you're PAYE will be unlikely. The only suspicion I have is how they can treat you as a PAYE employee when it suits them, yet not have to give you any of the benefits under employment law.
https://www.contracteye.co.uk/umbrella-companies-holiday-pay.shtml
| Quote: | If you sign up to an umbrella provider (as your employer), you (as a contractor) are entitled to receive holiday pay. Here we work out what legal obligations your umbrella company has, and how holiday pay is calculated. |
It seems you are treated as an employee when it suits them, but as a contractor when being an employee would suit you.
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Lord Percy
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| Posted: 13:54 - 27 Nov 2019 Post subject: |
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| Lord Percy wrote: | Yep they take £18 a week.
The recruiter added £5 to my daily rate to make up for umbrella company costs. So the originally agreed rate of 150 is actually 155.
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Yeah, right. The recruiter will be making far more than that.
A contractor would be offered almost twice what a normal PAYE placement would get. The scam is that the recruiter gets a massive payment up front for sourcing a permanent employee, or a massive cut out of the contractor rate, for doing it this bizarre and questionably legal way.
It sounds very dodgy to me, as according to what I've seen, the umbrella company appear to be breaking employment law by not offering employee benefits even though they want to treat you as an employee purely to avoid IR35 tax rules.
I suppose we'll find out sooner or later.
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TZR250 2MA road, TZR250 1KT road, TZR250 2MA race, TDR250, YZF-750R Boost colours.
Jaguar S Type 3.0 V6 Sport R, VW Transporter T5 GP LWB Shuttle 140ps DSG. |
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Old Thread Alert!
The last post was made 4 years, 141 days ago. Instead of replying here, would creating a new thread be more useful? |
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