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Bribery Act 2010

Umbrella Company ‘Referrals’ A Thing of the Past

In our opinion; providing a first class service to recruitment agencies will build lasting relationships, which is a key element in helping us to increase customer base. Our dedication to providing a fast and efficient service means that we save recruiters time and therefore money; as a result recruiters will often suggest that their contractors become employees of ContractorUmbrella.

An alternative to the above is for Umbrella Companies to offer financial incentives to recruitment agencies or individual consultants in exchange for recommending their services.

Under the new Bribery Act 2010, giving or receiving financial incentives to gain a commercial advantage is considered a bribe. From April 2011 the maximum penalty for bribery will increase from 7 to 10 years imprisonment.

The Bribery Act still applies if an arrangement exists between an Umbrella Company and individual consultant without the company’s knowledge. This creates new problems for agencies as the penalties for failing to prevent bribery are unlimited and you also face a ban from tendering for Government contract. This puts a strict onus on the recruitment firms to ensure that this type of relationship doesn’t exist. Failure to do so could see them caught up in costly legal battles with damage to the company’s reputation.

There is also another issue whereby HMR&C would consider the money as taxable and failure to declare the additional income could be treated as tax avoidance.

Here at ContractorUmbrella we monitor where people heard about us and the most common response is a recommendation by either the agency or a friend/colleague. We believe this speak volumes about the quality of service we offer our contractors and have never relied on paying financial incentives to gain new business. Let us help you.

If an Umbrella Company approaches you and offers you a financial incentive in exchange for leads; no matter how they dress it up, it is likely to fall foul of the new bribery act and therefore you should ask yourself the question – is it worth it?

If you would like to discuss any details on this page you can contact one of our expert advisors on 01206 591 000 or email us at

Why Choose ContractorUmbrella?

ContractorUmbrella is the hassle-free, straight talking umbrella company that provides umbrella employment for UK based contractors and freelancers. Independently voted as the best umbrella company by the readers of Contractor UK.

As one of the most trusted umbrella companies in the UK, we guarantee our employees peace of mind, absolute compliance and complete security. We are one of the longest standing and most respected umbrella companies in the UK.

Benefits of working through ContractorUmbrella;

  • Fast and easy registration - be ready to work in 24 hours, simply register online and we’ll take care of the rest.
  • Calculate your take home pay - use our online calculator to find out how much you could be taking home through ContractorUmbrella.
  • Same day payments - we offer same day payments as standard, for no additional fee.
  • Our Commitment Charter- is our guarantee that you will be looked after at every step of the way.
  • Flexible Limited Company Accountancy - when you sign up to our sister company Dolan Accountancy, you can transfer to ContractorUmbrella when umbrella employment better suits or your assignment sits inside IR35.
  • Employee Benefits - at ContractorUmbrella there are many benefits available to you as our employee including our Employee Rewards Scheme, Group Pension Scheme, Foreign Currency Exchange, Contractor Accommodation, Contractor Mortgages and much more.
  • Personal Employee Liaison Officer - we believe in the personal touch, so you will have your very own dedicated Employee Liaison Officer during your employment with us. Read some of the glowing testimonials we've received about our lovely staff and the outstanding commitment they give to all our employees and clients.

If you’d like to find out more, call us on 01206 591 000 or request a call back by completing our online form.