Clichés are overused expressions that at one time might have been original. This does not detract from the fact that they have value. A cliché that Umbrella companies like to pedal is If it seems too good to be true it probably is or one step further If it sounds too good to be true then it really is.
We have recently seen the promotion of tax avoidance models that promise improved net take home by investing in what is in effect a Growth Securities Ownership plan (GRSO). This is certainly making it more challenging for the good guys who play by the rules – nice guys finish last.
What is clear is that contractors need to be wary of a wolf in sheep’s clothing. It is understandable that the promise of compliance and a higher net take home can be seductive especially as it is apparently “endorsed by HMRC.” However, HMRC have been clear in expressing their view on GRSO plans. They do not work.
Despite the clarity provided by Spotlight 28 we have seen as recently as two weeks ago a company providing a “HMRC endorsed” product which we could only advise to avoid like the plague.
These schemes are bad to the bone with scheme promoters as slippery as an eel and ready to leave their employees carrying the can.
It is important that when considering an employment relationship that it is better to be safe than sorry.
Bright Sky Umbrella can provide engagement and payroll solutions that ensure our employees are paid compliantly and with continuity.
