All too often I hear from people who’ve been told by their recruitment Agent that they cannot use their Umbrella Company of choice and must use the one preferred by the Agent.
They are getting a bung
All too often the reason for this is that the Agent is getting a cut (a bung, pay off, commission or monetary incentive) for recommending their preferred Umbrella Company to you.
Unfortunately, there is nothing in the law which means that they have to disclose any incentive to you.
Equally there is nothing in the law which means that they have any rights to force you to use their preferred (incentivised) Umbrella Company.
You make the choice
Despite what your recruitment Agent may tell you, it is entirely your decision which Umbrella Company you choose to use.
Dig your heels in and push back at your Agent telling them to honour your choice of Umbrella Company.
High Take Home Pay Schemes
Unfortunately there are a number of unscrupulous Umbrella Companies who are offering very high rates of take home pay usually achieved by operating some sort of “Tax Scheme”.
Whilst the Umbrella Company may claim that the Scheme is approved by HMRC and legal it is unlikely to be so and could result in you incurring huge fines, penalties and bills for unpaid tax at a later date.
Best Advice on Tax Schemes
Anything that has the word Scheme in the title should be avoided at all costs!
There simply is no legal way to pay less than the right amount of tax … if there was we’d all be doing it!
Sleep at night and find the right Umbrella Company for your needs – CLICK HERE
Hold your Agent liable
If your recruitment Agent does insist that you use their recommended Umbrella Company then I would suggest that you ask them to provide a written indemnity against any future claims for unpaid tax, fines, penalties and losses that you incur should HMRC come knocking in the future.