26 August 2014
Umbrella Scam Day of Action:
Wednesday 27 August – 7-9am
Tottenham Court Road Crossrail site, central London (opposite The Tottenham pub)
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.