Umbrella scam protests Friday 23 May

19 May 2014

On April 5th, the laws which state who can be paid via CIS were changed. It is now law that if you work via an agency you are NOT SELF-EMPLOYED and can no longer be paid via CIS. A small amount of agencies are chancing their arm and attempting to carry on as before. The large majority are now giving the only payment option as Umbrella Co. Employed for Tax law purposes but self-employed for employment law.

Umbrella companies are legal and are being mis-used to once again rip off construction workers. The companies and the agencies are meant to be paying their part but are palming it off and deducting it from OUR wages. We are having to pay OUR OWN holiday pay and the EMPLOYERS NI Contributions. Agencies are trying to convince you to commit TAX FRAUD to improve your weekly take home by claiming for fraudulent expenses.

Everyone who goes through an Umbrella Company will see their weekly take home drop by 20 – 25% and also lose their end of year tax return. This is wrong and needs to be stopped before it becomes the industry norm. Sparks at Three Bridges (Crawley) and Tottenham Court Rd (London) walked off and refused to work through the scam. The only resolution, was for them to all be taken on the cards. Proper overtime rates, holiday pay & bank holidays, full employment rights, full protection and notice. We beat BESNA, now we will beat the Umbrella Scam, its time to get back out on the street and demand direct employment.

Umbrella Scam Day of Action
Bring your Umbrellas

North East, Cramlington Hospital – 6.50am, North West, Man City Training Ground – 7am, Swansea, Morriston Hospital, – 7am, Cardiff demo is 11am Llandough Hospital, Leeds Met University-BAM 7am

Unite the union



  1. steve dixon said:

    ive just been paid by hays on umrella and was 120 pound worse of than if still on c i s, they took £23 fee as well as £85 company costs, which i presume is speak for employers ni, plus £81.60paye and£45 employee ni . gross was £576 nett £380 is this a rip off or what. i told them ,iwont be there in morn

    2 June 2014 at 9:55pm
  2. adam said:

    Just been contacted by my agency and umbrella that i need to go on PAYE or Limited , both i would be loosing but Ltd i would loose less.

    3 June 2014 at 6:19pm
  3. mandy said:

    i have just been ripped off by jsa too, pay was 652 pounds, take home 420 pounds. charging holiday pay which i have demanded back, paid nearly 100 pounds nat ins. theifing b±±±±±±±. i will be contacting hmrc to see what they have done is legal.

    16 June 2014 at 9:37am
  4. Lydia Topham said:

    I deal with PAYE and company accounts for a firm of Solicitors so I know a bit about it and I have just come across this scam because my son is a self employed electrician who has just started a new contract with an agency. I have spoken to our company accountants, the CIS department at the HMRC and the PAYE department who all agree that the fact that these umbrella companies are passing on their NI and holiday pay responsibilities to the contractor is morally wrong. However they are taking advantage of a legal loophole and nothing can be done about it! Don’t work for agencies if you can possibly avoid it and if you can’t put your hourly rate up!

    31 July 2014 at 11:24am
  5. adrian stimpson said:

    its the same with supply teaching.These companies are an absolute disgrace. RACS GROUP are the worst ive come across.

    17 September 2014 at 7:32pm
  6. Paul glendon said:

    I’ve been self employed for 25yrs last 3mths I worked for net temps and they said they use an umbrella company called liberty bishop . Spoke to some dick there came out with all this bollocks about been better off . I’ve finished with them as I was £250 a wk worse off cheers Paul glendon

    7 November 2014 at 9:21am
  7. Barrie Smith said:

    I’ve started a petition on and also on 38 degrees to get people aware of this situation so if you can get on it and sign and share on social networks.

    20 March 2015 at 12:05pm
  8. Gary simmonds said:

    Thay R asking me to sick in fols bills to mack my wages up thats frord . My vis t howm pay is normlee £898.00 it chang to the umbrella scam my tack howm pay wos £485.00 for the saym owers saym pay rayt . Rip off it must be stopt asap ples Weer did the £400 go????????? Not to me

    6 January 2016 at 10:20am
  9. Ronnie Marr said:

    All umbrella companies are a rip off for low paid workers it is a disgrace that it has been allowed to happen and continues. HMRC got in touch with me for my receipts for expenses, i was told they were not needed by the UC and they just filled it in ( not that this made a blind bit of difference to the pittance i was left with after they took % out of my salary). Needless to say it was a long drawn out affair and many lessons were learned but NEVER EVER use an umbrella company if it can be helped.

    11 January 2016 at 10:32am

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