Government calls for industry input on umbrella consultation
The government has this week published a consultation on policy options to regulate umbrella companies and to tackle non-compliance in the umbrella company market.
The consultation closes at 11:59pm on 29 August 2023.
The government said: “The purpose of this consultation is to seek views on proposals to tackle non-compliance with both tax and employment rights by umbrella companies. The government has three main objectives for the umbrella company market. These are to:
- deliver improved outcomes for workers
- to support a level playing field in the umbrella company market
- to protect taxpayers from the significant revenue losses that currently arise from non-compliance.
“Together, these will enable both people and businesses to succeed in the labour market, supporting economic growth and ensuring everybody feels its benefits.”
With this latest consultation, the government is responding to the call for evidence on the umbrella company market that closed on 22 February 2022. The government is also publishing a consultation seeking views from stakeholders on proposals to regulate umbrella companies, which a significant number of respondents supported, the government said.
It also seeks views on options to tackle tax non-compliance in the umbrella company market that respondents to the call for evidence suggested is “causing harm to workers, businesses and taxpayers”, the government said.
The full consultation document – ‘Tackling non-compliance in the umbrella company market’ – is available here.
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