Soundbites: September/October 2023

What results would you like to see from the government consultation ended 29 August 2023 on umbrella companies?

Matt Fryer

Managing director, Brookson Group

“I’d like to see real clarity around the proposed due diligence that the supply chain will be required to undertake when choosing to work with an umbrella company. This should be accompanied with a proportionate penalty for them failing to do so. Such regulations will enable the supply chain to help clean up the market, creating a more level playing field for compliant umbrellas and recruiters, while also delivering a better experience for contractors. This should be complimented with proper enforcement activity to weed out any non-compliance, making these regulations a deterrent to bad actors.”

Nicky Owen

Director, Carrington Umbrella

“Carrington Umbrella hopes that the consultation will not take a sledgehammer to crack a nut. We welcome the scrutiny of the unscrupulous but trust that the consultation will recognise much of the good work that umbrella companies provide. We want a result that ensures workers’ employment rights are at the forefront of both umbrella and agency services. We want enforcement of current legislation to be stepped up. There needs to be a level playing field to ensure workers are provided with freedom of choice to select an umbrella that is compliant and can demonstrate transparency in every aspect of its service.”

Steve McDermott

Business Development Manager, New Red Planet

“The government’s consultation on umbrella company legislation is long overdue and will be strongly welcomed by the vast majority of those in the sector. It is important that any new measures introduced by the government achieve two main aims: increase compliance in the umbrella sector; avoid adding unnecessary complexity for businesses accessing temporary labour. Of the options being explored, the transfer of debt provision would ensure an easier route for HMRC to recover any tax debts. This, along with mandatory due diligence requirements for those in the supply chain, would be a positive next step in the ongoing battle to drive out non-compliance in the umbrella sector.”


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