Government issued a consultation and call for evidence on the umbrella sector in November, to ensure that its data is up to date. This is to ensure that HMRC are well informed as to how the market operates, what pay options are out there and how they work. HMRC would like to invite views from participants that use or are paid by umbrella companies in the sector, and how they interact with tax and employment rights.
Usually and certainly in the past, at this point meetings will take place with stakeholders and those wishing to be involved or attend meetings on the subject can request to be invited to discussions based on the following:
- The government are keen to receive responses from organisations and individuals who are employed/sub-contracted by umbrella companies to better understand the sector.
- The Government intend to regulate the sector enforced by Employment Agency Standards Inspectorate (EASI).
- The Government would regulate the sector with the minimum legislative requirements umbrella companies would be expected to comply with.
- The Government would like to ascertain whether the introduction of the Key Information Document has helped workers understand what their take home pay is likely to be – I can confirm that every Umbrella/Supplier in both the low paid and high paid sector that I engage with, all send out a KID to every contractor/worker.
- The Government would like to understand reasons for using “joint-employment” contracts and how widespread this practice is. I am keen to understand if this is the offshore model. There has been guidance issued on this recently from HMRC – if you would like a copy please let me know.
The responses and any evidence is to be provided no later than 11.45pm on 22nd February 2022. If you like to discuss more with us, please get in touch!