The answer to this is both Yes and No. Let’s start by answering the Yes part, one of our senior Consultant carried due diligence on one of the umbrella company with the so called pay calculator. Having put pay details etc the online calculator indicated that a take home from a gross of £1152.00 was £982.31 even by the standards of an ordinary men on the street, one can see something is wrong here. A representative from that umbrella company later called our Consultant who had posed as a contractor and without the Consultant having given additional information, the representative changed their goal post and said His take home was now £744.46.
When she was challenged why their Umbrella Company was misrepresenting facts and therefore misleading the general public, the representative hang up the phone. SRM Payroll recommend you to do your research thoroughly and choose an organisation that is 100% compliant. Please don’t be lured by promises of a 90% take home pay rate, as these companies may be operating a non-compliant scheme and soon you may land yourself in serious problems with HMRC. Most of these Umbrella companies with take home pay calculator (not all) are unethical as they falsely and intentionally misrepresent facts with their pay calculators which are aimed at luring and giving people false hope.
The second part of the answer is No. There are no dangers of using an umbrella company if you have the right one. SRM Payroll is fully and 100% compliant and we don’t play the market games of take home pay calculator and that’s why we do not have one on our website. We are ethical and we will not be using such marketing gimmicks to lure people. We believe in giving people the right information and give them the opportunity to make their well informed decision without pressure which may come from these misrepresentation of facts.
We base our operations on truthiness, ethical stance, integrity, honesty, transparency. By so doing, SRM Payroll, will protect you from unnecessary HMRC investigations. If you use some of these umbrella companies that may be operating a non-compliant scheme, soon or later you will taste the bitterness of HMRC investigations and their associated penalties and fines when they land on your door step. Did you know that HMRC can investigate you going back to six years and they can go as far as 20 years back if they suspect fraud? Don’t expose yourself, get on the right side of the law and be safe. At SRM Payroll your safety is our priority.
Our simple yet comprehensive payroll service and range of outstanding benefits are designed to let you concentrate on your business. Our dedicated team of industry experts specialise in areas such as tax, compliance, payroll, admin, client service, and HR, and are well-equipped to take care of all your needs while you focus on your work.