Crystal Umbrella

Embarking on a new career path as a PAYE umbrella contractor brings with it many advantages –greater flexibility, becoming your own boss and an improved work life balance being just some of the claims frequently cited.  However, contractors working through umbrella companies could also be amongst the 40 per cent of UK workers who are reluctant to take completely legitimate time off work, often to their own detriment.

That is the chief finding from a recent study by the recruitment agency reed.co.uk, which reveals that well over a third of the British workforce (40 per cent) had failed to take their full allocation of annual leave.  In addition, well over half (57 per cent) of those polled admitted that they had refused to take the average four to five weeks of annual leave in 2010.

Furthermore, a quarter of the workers surveyed in the study expressed anxiety about taking leave because of having to deal with a huge pile-up of work upon their return.  The beneficial effects of couple of weeks’ relaxation on a sun-drenched beach can, it seems, be wiped away within hours of returning to work.

Commenting on the research, the Managing Director of reed.co.uk, Michael Warnes suggested that, with the economy remaining in such a parlous state, large numbers of UK workers are experiencing heightened concern about job security, including the prospect of losing contracts.  As a result, they are attempting to stay in the good books of their bosses and clients by sacrificing annual leave entitlements.  Whilst the research confirms that the UK is a nation of very committed workers, Mr Warnes continued, “overworking will lead to reduced levels of engagement, motivation, and happiness.”

Umbrella companies and limited companies which advertise their services on the Web might do well to heed the recent warning from the Forum of Private Business: check your digital images carefully because if you don’t, you might find yourself stung by costly copyright claims.

The Forum reports a big surge in calls to its customer helpline on this specific issue after several businesses received hefty payment demands from image copyright holders. Typically, web design is outsourced by small businesses to specialist companies and until recently the presumption has been that the latter would source, upload and obtain permission to use any copyrighted pictures. However, there is no obligation on web design companies to perform this last function. Where permissions have not been secured, copyright infringement liability actually falls on the businesses who commissioned the design firms, not the latter.

Forum Chairman Phil Orford said that his organisation had received a number of calls from members who had used images from one the largest stock photography companies, Getty Images. They had all been notified by Getty that they owed money because, however unwittingly, they had used unlicensed images on their sites. He added that recent technological advances had made it both cost-effective and easy for copyright holders like Getty to track the use of their images.

The Forum advises small entrepreneurs to check with their web design company where they have sourced any images they use and request visual proof that they have obtained the necessary rights. If not and you still wish to use the images, you will need to buy these rights yourself. An unpleasant surprise in the form of a big liability bill may well await you if your overlook this step.

Our apologies to the Forum of Private Business for our previous publication error. The above advice comes from the Forum of Private Business and not the FSB as previously mentioned.

Whilst contractors working for umbrella companies will have had their tax automatically calculated and paid, those who file self assessment returns should be on the lookout for a new e-mail scam, according to a warning issued recently by HMRC.

There has been an increase in the use of phoney emails disguised as official HMRC communications in recent weeks, this time advising people that they are entitled to a tax rebate.  But the first thing to note is that the real HMRC would never use email to inform taxpayers of matters such as this.

The fake emails contain a range of ruses aimed at getting people to divulge sensitive personal information.  One invites individuals to visit a webpage to verify their banking details; another claims that lottery winnings, seized goods or inheritance money will be paid as soon as the necessary personal banking data is supplied. Yet another invites people to download an attachment which ostensibly requests a refund through PayPal. In addition, HMRC warns, several such scams have emerged via SMS – recipients of these messages are asked to call a number in order to “claim” their “refunds.”

All are phishing exercises and should be avoided at all costs. If anyone receives such a message, HMRC requests that they forward it immediately to phishing@hmrc.gov.uk and then delete it without delay.

The timing isn’t accidental – the self assessment system inevitably results in many freelancers completing their returns at the eleventh hour (or later). Scammers tend to exploit flurries in activity to provide a convenient cloak for their nefarious deeds. Unsuspecting freelancers may be expecting all manner of communications and reminders from HMRC at this time of year, rendering fake tax-related emails more plausible.

HMRC will never contact you via email to request personal information or update you on personal tax matters.

A good deal of anxiety has been circulating in recent years about the prospects of an HMRC clampdown on umbrella companies – fears which, if anything, have gathered momentum in the wake of the austerity measures announced by the Chancellor to tackle the UK’s eyewatering budgetary deficit. However, according to a leading tax expert from the international law firm Osborne Clarke, such worries are almost certainly far in excess of the reality.

Kevin Barrow, a partner in the law firm, was addressing the Association of Professional Staffing Companies when he made his remarks. He added that PAYE umbrella servicer providers don’t simply support large numbers of contractors in the UK’s freelance community, they “perform a valuable, practical function” for HMRC, too.

Were it not for the efforts of umbrella companies, Mr Barrow continued, tax revenue which is now efficiently collected by them for HMRC might simply disappear into the black economy. Any freelancer who chooses to work for a PAYE umbrella company will pay income tax and will also be protected against IR35 liability. HMRC benefits from a guaranteed source of revenue and simultaneously avoids the necessity for convoluted and expensive IR35 investigations.

HMRC may decide to tighten the screw, however, in specific areas such as overarching contracts of employment and “artificial” employment contracts. For most contractors working for well-run, bone-fide umbrella companies such as Crystal Umbrella, however, any clampdown in these practises will be of no relevance.

Crystal Umbrella is dedicated to providing a professional service to all of our customers and clients. This is why, back in 2008, we launched our Recognition scheme to publicly praise and reward our staff who go that extra mile for our customers and client base. The aim, as always, was to ensure that those using our services can trust in the knowledge and expertise which exists within Crystal and that, irrespective of their reason for contacting us, individuals can expect to receive the highest standards of customer care.

The Recognition scheme has actually succeeded in refocussing the entire business, serving as a reminder to all staff that customer service and satisfaction is at the very heart of the service we provide. Overall the scheme has been a resounding success and we would like to take this opportunity to congratulate our 2009 winners: Sam Cayton, Suzanne Coombes and Christine Smith. In fact, Sam Cayton and his colleagues in Information Technologies deserve further congratulations as they were named Crystal Umbrella’s Team of the Year 2009.

Crystal Umbrella continues to promote excellence. We are dedicated to developing our staff and our business. We recognise and appreciate the skills and talents of each and every one of our employees and the opportunity to reward their dedication to the work that we do. Our Recognition scheme has now run its course but our commitment to customer service and staff development continues with our newly-launched scheme which aims to tap into the skills and knowledge of our front line staff to generate fresh ideas for the business as a whole.

Congratulations to IT contractor Ian Boylett, who, after submitting the recent Crystal Umbrella Customer Survey, was the lucky winner picked out of the hat this week.
Ian takes home £250 worth of vouchers, and Crystal Umbrella would like to take this opportunity to thank everyone who completed to survey. The results are an integral part of our strategy to offer superior services to both contractor and agency.
Once again, congratulations Ian.

We are delighted to announce our latest winner of the Crystal Umbrella customer service award as Sam Cayton. Sam, who scoops the 2nd quarter award, is dedicated in his role as IT Assistant. Sam has always demonstrated a positive and helpful attitude towards his work. His professionalism, courteousness and willingness to learn new tasks, were all key factors in his triumph. GEM is about showing you are customer responsive and always trying to make an interaction positive. Sam demonstrates this continuously across the board when dealing with not only Crystal Umbrella but other external organisations. He never complains and is truly passionate about what he does.

Congratulations Sam.

The Chancellor of the Exchequer made it clear in his recent Pre-Budget Report that he would leave the current rules on tax relief for travel expenses unchanged. However, he also promised that the HMRC will refocus its efforts to ensure that the current regime is properly applied. He added: “If compliance does not improve, the Government may return to
this at a later date.”

The message to the industry is clear. We must clean up our own stables or face action that could undermine the industry. The easy option is to go on as before, hoping that the government has bigger fish to fry and won’t do what it has promised, but this may leave many stranded and again non compliant.

The AEMC, along with Crystal Umbrella & other members at the forefront have decided to be proactive and seek to build a strategic relationship with ministers and HMRC. The AEMC also wants the trade bodies’ presence to increase the understanding of the industry and its issues amongst parliamentarians of all parties.

It has therefore been decided to engage the services of a political adviser, Gary Kent, a veteran insider in Westminster who has worked for 22 years as a researcher, columnist and lobbyist for cross-party causes.

Gary Kent said: “the AEMC now has the opportunity to build itself as a respected trade association that can influence opinion-formers and decision-makers that its activities benefit temporary workers and the Economy as a whole. The sector must demonstrate that self-regulation can work for everyone.”

He added: “My aim is to bring AEMC representatives together with Parliamentarians, and others, to make it plain that the AEMC is deadly serious about compliance. It has to prove beyond reasonable doubt that it is willing and able to step up to the plate. Even if the sector wasn’t interested in politics, politics is interested in the sector.”

We are delighted to announce the winner of our internal customer services award, GEM, as Lisa Wrangles. Although not operating in a ‘front line’ role, Lisa has demonstrated a pure focus on the customer. Quietly, steadily and focused, she acts in a professional manner at all times, which are core competencies of the GEM brand. Praised by both internal and external customers, Lisa has been a regular nomination for the GEM quarterly awards, and thoroughly deserves this commendation.

Many congratulations to Lisa and we endeavour to deliver even more energy behind GEM in 2009