The roll-out of the IR35 reforms that came into effect in the public sector in 2017 and more recently in the private sector in April 2021 has seen many contractors being forced to review their working options and has led to a proliferation in the number of contractors being required to work through an umbrella firm. It has also led to a surge in malpractice and a rise in the numbers of providers masquerading as umbrella firms when they are in fact ‘have I got a good idea for you’ schemes and best avoided. Today, it has never been more important that contractors, recruiters and hirers throughout the supply chain understand some of the warning signs and what to avoid when looking at the providers in the market. Some may not be all they purport to be.
https://business.express/when-is-an-umbrella-not-an-umbrella/