Umberella Companies help

[Jimski]

I have been offered a job but it is on a contractual basis - this is something I haven't done before and I don't want to get burnt by it

the umbrella company is called Paystream (http://www.paystream.co.uk/umbrella-company/)

has anybody dealt with them?

what do I need to wary of?

[Eric Mc]

Everything.

Have they given you any options other than an umbrella company?

[Jimski]

i am getting an answer on that later today, I was sent some basic information about the umberella company

I don't know where to begin looking at this stuff as its all over my head - I'm not great at all this stuff I am used to being employed by my employer instead of a 3rd party

[Eric Mc]

I think it is grossly ufair of "employers" to dodge their obligations by trying to hire people without hiring them as employees.

Not everyone is cut out for the world of contracting and umbrellas. It suits some - but not all.

[Gr44]

Jim,

I used Paystream for 5+ years, I'll drop you a PM to discuss offline.

Sean

EDIT:

I can't seem to PM or email you, if you can drop me a note with your email address then I'll give you some details.

[JoeBolt]

I used a company called Parasol for a few weeks and they were abysmal.
Avoid at all costs.

[egomeister]

JoeBolt said:

I used a company called Parasol for a few weeks and they were abysmal.
Avoid at all costs.

I've used them in the past and they were ok, was years ago admittedly.

OP: It sounds like it has been suggested you use paystream? (by the agency?) You should be able to use whatever umbrella you want. From my brief experiences of using an umbrella, be careful with anyone who claims they can get you more money than anyone else - the rules are the same for everyone, so if they are claiming that they are probably sailing closer to the wind! Ultimately, it's your tax affairs so you have to be comfortable with whatever work is done on your behalf.

[chryslerben]

I'm currently using danbro odd name put seem to come across as a competent bunch pm me and I can get them to contact you for a chat of you like?

[malks222]

I've used 'orbital management services', but I spoke to hmrc and got a UTR number and operate as a sole trader. this means orbital pay me top line before any deductions and I deal with my tax/ni by doing a self assessment. you could get an accountant to help with your self assessment, but I feel by doing it by SA I know exactly what I'm doing and what I'm paying if anyone comes asking!

[Eric Mc]

Are you really "self employed"?

Just because HMRC have issued you with a UTR does not mean they have agreed your status.

[Blue62]

Eric is right, you need to be very careful. Umbrella's are a growing business as more employers look to temporary and interim workers, but there are quite a few dubious players out there, some have funding problems and some sail very close to the wind where HMRC are concerned. The best advice I can offer is to go with one that is FCSA approved, it's self regulating but they are at least properly funded and adhere to a code of conduct.

[Dr Jekyll]

Eric Mc said:

I think it is grossly ufair of "employers" to dodge their obligations by trying to hire people without hiring them as employees.

Why?

[Eric Mc]

When they boot you out you find out.

[robmlufc]

Contracting is for winners

+1 for Danbro

[Dr Jekyll]

Eric Mc said:

When they boot you out you find out.

Perhaps it's only because they can get rid of me when my skills were no longer required that they took me on in the first place.

Anyway on my current contract I'm on 4 weeks notice, the same as most so called permanent jobs.

[Eric Mc]

I think the excessive use of contracting has had a corrosive and destructive effect on the British economy.

It has encouraged short termism, lack of committment and lack of loyalty (on both sides) and the gradual erosion of TRUE personal worth.

In some industries it has had a serious effect on safety standards and can even have led to serious injury or even death - the rail industry in particular.

Contracting has its place - but it has become far too pervasive in too many sectors.

[robmlufc]

Eric Mc said:

In some industries it has had a serious effect on safety standards and can even have led to serious injury or even death - the rail industry in particular.

As much as I love contracting, thats a good point. I walked out on a job on trains because of safety issues.

[Eric Mc]

I realised the pernicious nature of hiring contracters, sub-contractor, sub-sub contractors etc after reading railway expert Christian Woolmar's book "Broken Rails". He anticipated over ten years ago the way that sub-contact culture essentially turned everybody into a "mini-business" with poor chains of command, authority and responsibility.

As a result, when things go wrong, no one acknowledges any responsibility for what happened and they all run to check the small print.

There is nothing wrong with the use of independent sub-contractors in certain cases and the arrangement works well in certain business sectors better than others. But it has become far too common now and is used becaused everybody thinks they can use the legal separation of contractors from sub-contractors to hide from their responsibilities.

Edited by Eric Mc on Tuesday 29th January 11:35

[Alex]

Eric Mc said:

Contracting has its place - but it has become far too pervasive in too many sectors.

A side effect of overly stringent employment laws designed to "protect" employees.

[Eric Mc]

Alex said:

Eric Mc said:

Contracting has its place - but it has become far too pervasive in too many sectors.

A side effect of overly stringent employment laws designed to "protect" employees.

Absolutely.

All that is happening, of course, is that gradually the laws governing the treatment of "sub-contractors" will gradually tighten up and eventually mimic to a large extent the law that applies to employees. We are already seeing this beginning to happen now.

In the end we have double or treble the legislation that we started with.