With over 100 umbrella and payroll companies, the UK payment solution market seems like a well-served, possibly overcrowded place. Is this a market to launch another umbrella company service into?
Richard Turnbull, CEO of grey matter group, thinks so. "There are a lot of umbrella company providers, but only a fairly small number are recognised as being compliant and well-run. It's relatively easy to start and umbrella, and easy to make a few ambitious promises to generate business. But the experts all agree that HMRC have a few targets in their sights, and that some umbrella companies have reason to be worried."
Having worked in the industry since the pre-IR35 days, initially as MD of Freelance Professional Services London office and then as Director of i4 Group, Turnbull has seen the market change as new legislation is introduced, "when it comes to HMRC interest, the common thread running since IR35 seems to be the inflated use of legitimate planning elements. Now we are seeing expenses come under intense scrutiny. Sit a group of umbrella company operators down and within minutes the conversation will turn to the rogue umbrella companies who promote themselves on the back of distorted and unreliable expense allowances. In HMRC's eyes, there is likely to be guilt burdened on all through association"
Turnbull's new company, grey matter group, plans to be different. Aiming the service at high earning candidates, grey matter group offers a boutique, individual service and intends to establish a long-term relationship with clients, "we want to become more than a throwaway service. We want to add genuine value to our client's lives. In the US there is a well-established industry called 'family offices'; providers of high-end financial and administration services for wealthy US families. We plan to do the same, but for high earning contract workers. It will be about much more than just money; it will be about quality and life-enhancement."
