Stop umbrella companies double charging, temporary workers.
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Temporary staff working on public sector are going to be affected by this . Especially with the new IR35 legalisation coming in force on 6 April . Umbrella companies are holding agency staff hostages. Some agencies are forcing their staff to join umbrella companies. I guess those agencies have shares with those umbrella companies. I understand a smilar petition was done six months ago. It never got enough attention because most agency staff were not aware of this .An estimated 430,000 people in the UK are paid through such firms.
Temporary workers we are losing thousands of pounds in wages because we are being exploited by so-called umbrella companies.
These companies act as middlemen between contractors and employees, and are forcing staff to pay extra tax and administration fees.
Payslips for temporary workers now looks like a shopping catalogue, there are so many procedures and deductions.
Disadvantages of an Umbrella Company
1. It's too Expensive as they charge more than Accountancyfees, without giving you any further help.
2.You won't get any Tax Advice from them
3. If they make a mistake with your tax calculations you will pay for their mistake
4 If they go out of business you may loose your money.
5. Your Tax Code may be messed up resulting in additional unexpected tax at the end of the year.
6. Also they are usually very difficult to deal with
*In some cases the umbrella companies has gone into bankruptcy and resurface under a different name. Leaving temporary workers vulnerable, paying all the charges to Hmr revenue. Which those umbrella companies were deceiving temporary workers.Families has been torn apart , some temporary workers has end up in mental health institutions. Some temporary workers has committed suicide , because they were left with huge bills to pay caused by failures of the umbrella companies.
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