If it seems to be too good to be true, it probably is!

In any market everybody is looking for competitive advantage especially if the market is slow as it is in recruitment at present.

The latest device within recruitment is the so called “Umbrella”, companies offering payroll facilities that claim to be able to take advantage of self employed worker regulations which means that holiday pay and employers national insurance can, it is claimed, be sidestepped. Most schemes that we have seen do offer the workers a higher rate of pay than National Minimum Wage as a means of profit sharing on the savings but these schemes sail very close to the wind and are against the spirit of the employment regulations.

To gauge the authenticity of any offer simply ask for a copy of the schemes HMRC approval. If it is genuine why should they not send you one? To date we have never seen such a document but are aware that competitors claim to hold such approval so why not prove it?

Our advice is, if a copy of the HMRC approval is not provided – walk away and avoid a potential boomerang if HMRC challenges the arrangement.
Even if an HMRC approval is held make sure your employment needs meet the criteria.

It is an old joke but it reminds me of the scaffolder who at the top of the ladder was self employed but became employed as he fell to the bottom – so it is very much caveat emptor , so please be careful.

In every business there is a minimum cost of doing business and if you get offers of hourly rates that look to good to be true , it because they are