Umbrella companies??

Started by cyphyr, December 03, 2019, 04:22:01 am

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cyphyr

Has anyone had any experience of Umbrella companies?

I am about to sign up for a new 4 month contract with a VFX company in the UK and the agency that I got the position through is insisting that I am employed through either an "Umbrella Company" or a "Limited Company".  I have worked for many digital media and vfx companies, both larger multi-national and small start-ups,  for the last ten years and have never had this as a requirement.  I have always been either a "Sole Trader" or an employee.  I have in the past been advised that it may be helpful to have an Umbrella Company for tax purposes but since I rarely got near the relevant thresholds it never seemed that relevant.

I don't think there is anything particularly dodgy going on but as I say I have never had this as a requirement.
Has anyone else in the "industry" had the requirement and do you have any recommendation.

Cheers :)
www.richardfraser.co.uk
https://www.facebook.com/RichardFraserVFX/
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Dune

I understand you're not registered with a chamber of commerce as a official 'self-employed one-man business'. Maybe that would be enough, as it is for me. But Netherlands may be different from other countries. A bookkeeper or accountant may know what's feasible and advisable.
But the term umbrella company sounds as though you need to have a secret account on the Cayman Islands 8) ;)

cyphyr

Quote from: Dune on December 03, 2019, 05:34:44 am...
But the term umbrella company sounds as though you need to have a secret account on the Cayman Islands 8) ;)
Shhh !
If only ;)
www.richardfraser.co.uk
https://www.facebook.com/RichardFraserVFX/
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WAS

I'm not sure I understand. Here in the states a umbrella company is like a temp agency, that gets you work somewhere that needs jobs filling. You are employed with the Umbrella Company or Temp Agency, not the place you go work at that they find you. Not sure if that is what this is or helps.
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N-drju

Richard, I think the way Ulco understands it might be right. Maybe it's just that you need to be a "one-man company". Have your own registered "economic activity" (as we, for a change, call it in Poland) or sign a commission contract.

I admit I have never heard the term as such either... ???
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cyphyr

December 03, 2019, 12:37:43 pm #5 Last Edit: December 03, 2019, 12:40:48 pm by cyphyr
Quote from: WAS on December 03, 2019, 10:24:32 amI'm not sure I understand. Here in the states a umbrella company is like a temp agency, that gets you work somewhere that needs jobs filling. You are employed with the Umbrella Company or Temp Agency, not the place you go work at that they find you. Not sure if that is what this is or helps.
That may be close to the mark.
It is effectively a temp agency that I am booked through.
In essence I am working for the agency who have sub-contracted out my services.
It's just not a mechanism that I have come across before.

Also it would appear that have changed their mind and I no longer need to go through the Umbrella Company ...
Quote from: N-drju on December 03, 2019, 12:36:09 pmRichard, I think the way Ulco understands it might be right. Maybe it's just that you need to be a "one-man company". Have your own registered "economic activity" (as we, for a change, call it in Poland) or sign a commission contract.

I admit I have never heard the term as such either... ???
I think this is what we call a sole trader over here in the UK.
I can create a limited company if I want.
There are certain advantages regarding tax and it is a useful system if your turnover goes over a certain amount but it is not a requirement.
www.richardfraser.co.uk
https://www.facebook.com/RichardFraserVFX/
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Ryzen 9 3900X @3.79Ghz, 64Gb (TG4 benchmark 6:20)
i7 5930K @3.5Ghz, 32Gb (TG4 benchmark 13.44)

WAS

Quote from: cyphyr on December 03, 2019, 12:37:43 pm
Quote from: WAS on December 03, 2019, 10:24:32 amI'm not sure I understand. Here in the states a umbrella company is like a temp agency, that gets you work somewhere that needs jobs filling. You are employed with the Umbrella Company or Temp Agency, not the place you go work at that they find you. Not sure if that is what this is or helps.
That may be close to the mark.
It is effectively a temp agency that I am booked through.
In essence I am working for the agency who have sub-contracted out my services.
It's just not a mechanism that I have come across before.

Also it would appear that have changed their mind and I no longer need to go through the Umbrella Company ...
Quote from: N-drju on December 03, 2019, 12:36:09 pmRichard, I think the way Ulco understands it might be right. Maybe it's just that you need to be a "one-man company". Have your own registered "economic activity" (as we, for a change, call it in Poland) or sign a commission contract.

I admit I have never heard the term as such either... ???
I think this is what we call a sole trader over here in the UK.
I can create a limited company if I want.
There are certain advantages regarding tax and it is a useful system if your turnover goes over a certain amount but it is not a requirement.

I'm not really sure I can get into specifics of places but the last temp agency I worked with really messed up a lot. From correct information on forms or addresses down underselling positions. I ended up getting a gig with a place where a buddy worked, and what I was paid was almost under a quarter of the hourly my buddy made in same position actually employed at the business the temp agency was filling. That was really discouraging considering I was thinking was gaining from this job while they found me full time work... When I could have put in resumes to places like where my bud worked independently, even if not stable, I think it would have been better off for me. I realize the temp agency makes money too but I don't know that seemed bad.
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N-drju

Just make sure you don't work for them Richard. :-\ ;)

kisspng-umbrella.jpg
"This year - a factory of semiconductors. Next year - a factory of whole conductors!"