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The scheme users sign a Contract of Employment and Commercial Loan Agreement with a company based in the Isle of Man (Compas Limited). Two UK Umbrella Companies (Ernest Umbrella Limited/Imagine Umbrella Limited) then enter into an Agreement for Administrative Services with Compas Limited for the provision of the scheme user’s services. Ernest Umbrella Limited/Imagine Umbrella Limited then contract the scheme user’s services to a UK intermediary/agency. The UK intermediary/agency then contracts the scheme user’s services to the end client.
PaySentry automatically checks your umbrella partners against HMRC named schemes and stop notices, and alerts you to any match.
See Umbrella Watchdog