Contractors are being urged to start double-checking the badges that umbrella companies display on their websites, after a spate of recent scandals. The advice comes from experts, who say that too many contractors are being caught out by bogus firms masquerading as legitimate businesses.
In some cases, these firms have even managed to obtain genuine accreditations and badges, which they then use to mislead potential customers. As a result, contractors are being advised to carry out due diligence on any umbrella company before engaging in their services.
Accreditation by whom?
HMRC recently called out a company that has been using a certification badge from ‘The Institute of Freelancing & Contracting Professionals.’ It is weird because IPSE (the Association of Independent Professionals and the Self-Employed) started in 1999 and has been continuously fighting with the government for contractors’ rights and says that they have never heard of such a name.
Andy Chamberlain (PSE’s policy director) told Contractor UK, “IPSE has not been previously aware of ‘IFCP’ and is not therefore in a position to verify its legitimacy, or otherwise. We advise contractors to take great care when choosing a provider. We would also add that contractors should be wary of any claims of accreditation from unverified parties.”
“Peak PAYE [being outed] by HMRC is highly topical as tax avoidance [is] very much back on the agenda. But PEAK Paye’s website shows it is accredited by an outfit called the Institute of Freelance Contractor Professionals which claims to be like independently audited and ‘fully disclosed to HMRC.’ Etc. Etc. Someone clearly has a sense of humour.” says Adrian Marlowe (Recruitment lawyer at Lawspeed).
How to identify these ‘sham’ organisations?
When choosing an umbrella company to work with, it's important to make sure that they are reputable and have the proper accreditation. Unfortunately, there are fake accreditation badges out there that can fool even the savviest of contractors. Here are some tips for spotting a fake one:
- Check the list of accredited companies on the official website of the accrediting body. If the company you're considering is not on the list, it's likely that their accreditation is bogus.
- Be wary of companies that claim to be accredited by a "self-regulatory organisation." These organisations are not recognised by the government and are not legitimate.
- Look for red flags such as misspellings, grammatical errors, and incorrect contact information on a company's website. These can be indications that the company is not legitimate.
By following these tips, you can avoid being fooled by a fake accreditation scheme. Choose your umbrella company wisely to ensure a positive experience working with them.
To sum up:
While it can be difficult to spot a fake accreditation scheme, especially if you are not familiar with the industry, there are some telltale signs. By being aware of these signs and knowing where to go for verification, you can protect yourself from being fooled by bogus badges.
Reliasys is a respected umbrella company with Professional Passport accreditation.
Being a company that supports contractors, we have a special understanding of how they work and what they need from us. We are passionate about offering outstanding customer service and are devoted to ensuring that workers are always paid on time and in full.
Since we have been offering umbrella solutions to contractors for a long time, we have a solid awareness of the laws and the challenges associated with compliance. We are fully familiar with the issues a contractor has as a self-employed person.
Phone number: 020 3500 2615
E-mail: info@reliasys.co.uk
Also Read: The importance of maintaining mental well-being as a contractor