With so many Umbrella companies in the market, choosing the right provider for you can often seem like a daunting task. A good start is to make sure the company is a member of the Freelancer & Contractor Services Association (FCSA). By choosing an FCSA accredited umbrella you can rest easy knowing you are being paid correctly and compliantly without fear of being chased by the tax man.
What is the FCSA?
The FCSA is the “UK’s leading membership body dedicated to raising standards and promoting supply chain compliance for the temporary labour market.” FCSA accreditation is recognised as the gold standard for compliance within the temporary labour market.
In order to gain accreditation Clipper Contracting (and all other FCSA accredited companies) undergo a comprehensive audit and assessment process. All members adhere to a strict code of compliance to uphold the highest standards of compliance and best practice in the industry, and are audited yearly to ensure that we continue to operate compliantly and ethically.
So why is it important to use a compliant Umbrella?
To protect yourself!
HMRC continue to clamp down on the Umbrella market – they have recently released a paper looking at tax avoidance schemes. As covered in many of our previous blogs, there are unscrupulous Umbrella companies on the market actively promoting tax avoidance schemes. Some Umbrellas offer contractors the chance to retain upwards of 80% of their pay by targeting tax “loop holes” and knowingly underpaying employment tax.
Although a high take home pay sounds appealing, you could be left with a large bill for unpaid tax. You only need to google ‘loan charge repayment’ for reams of articles on other unfortunate workers that are now having to pay back thousands of pounds in unpaid tax, leaving their finances and wellbeing in tatters.
Remember these key rules;
· Stop - don’t sign anything that you are uncomfortable with or don’t understand.
· Challenge - check for warning signs, challenge what you see, ask questions.
· Protect yourself, protect others - report tax avoidance schemes to HMRC.
Compliance has always been at the forefront of our business and as an FCSA accredited member Clipper Contracting are here to help.
We only offer compliant solutions – no hybrid models, no loan schemes, no offshore payments.
Get in touch today for a no obligation chat - 01305 233170