Umbrella Companies

Choosing the right umbrella company

Why do Recruit4vets have a Preferred Supplier List of umbrella companies?

HMRC is bringing in new legislation in April 2020 concerning off-payroll workers. Part of this legislation states that if HMRC is unable to collect an outstanding tax liability from a party, then the liability for unpaid tax and national insurance will transfer back to the agency, and if that fails, then HMRC will pursue the client. It is vitally important therefore that the agency and the client are 100% satisfied that the umbrella company used by the contractor is fully compliant with the new legislation and is financially sound.

Why is it important to choose the right umbrella company?

With literally 100's of umbrella companies in the UK it is often difficult to tell an ethical or honest company just from their website or a brief telephone conversation. The umbrella market operates without any regulatory oversight and anyone can literally set up an umbrella company overnight, it is important therefore that care is taken when choosing an umbrella company. The last thing you want is an unscrupulous umbrella company shutting down owing you a months pay or even worse HMRC conducting a tax investigation on you because they have been operating an experimental tax avoidance scheme. And the last thing we or the end client wants is HMRC pursuing us for unpaid tax and national insurance.

How to choose the right umbrella company? 

There are plenty of fully compliant umbrella companies who operate to extremely high standards. One way to be confident your umbrella company is operating to such standards is if they are FCSA accredited. The FCSA is the UK's leading professional membership body and standards for accreditation with the FCSA are the most rigorous and comprehensive within the industry. To search for an FCSA accredited umbrella company visit

Which umbrella companies do we recommend?

Below is a list of companies we recommend who are all FCSA accredited. 

We highly recommend Danbro simply because we have worked with this company for almost 10 years and we know the service they provide to locums and contractors is second to none. Working through Danbro's umbrella services you will receive the following:

  • BUPA Cash Plan
  • Statutory payments (SSP, SMP, SPP)
  • Danbro Rewards – giving you access to a range of exclusive discounts for hundreds of household retailers, saving up to £1500 per year
  • Danbro One Pension Scheme
  • Professional Indemnity £5,000,000*
  • Public/Product Liability £5,000,000*
  • Employers’ Liability £10,000,000*
  • Discounted Self-Assessment Tax Return
  • Access to a free introductory consultation with our Independent Financial Advisor

To register with Danbro please visit

If you need any further advice please do not hesitate to contact us on 01423 701321 or email 

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