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How Umbrella Reclaim Works

Under the laws of England and Wales*, employers, including umbrella company workers, are not allowed to deduct employers’ National Insurance Contributions (NICs) or Apprenticeship Levy from a worker’s gross pay: see HMRC’s Employment Status Manual (ESM 2390): Employers, which includes umbrella companies, cannot by law deduct employer’s NICs from a worker’s gross pay.

Umbrella Reclaim© will assist contractors in reclaiming moneys unlawfully deducted by their umbrella company(ies). These claims may be very substantial.

Umbrella Reclaim© is currently building a client base of individuals affected by this scandal, and is considering the most appropriate and cost-effective way to seek compensation, by group legal action against umbrella companies and entities with liability for directing claimants to such companies.

You could be eligible to claim thousands of pounds in compensation as an umbrella company contractor/worker (normally covering the period of six years prior to the claim).

Initially, Umbrella Reclaim© will be collating information about claimants by asking them to
register and send in details of the deductions that have been made by their umbrella companies. Those deductions will form the basis of the claims with the intention that the claims be brought together as part of a group claim against the relevant umbrella company or companies.

Group Claims are generally considered to be the most cost-effective way of seeking redress in such circumstances. The registration fee is £99.00 (inc VAT) as a contribution to the cost of collating registrants’ details, identifying the claim(s) and creating a database to enable registrants to be allocated to the appropriate group. Each group would apply to the court for a Group Litigation Order (“GLO”). Read about GLOs here.

Have questions? Read our FAQs section for more details.