One of the three main objectives of the Umbrella Consultation Paper was to deliver improved outcomes for workers (contractors).
To do this, the paper contained the following proposed changes:
- Regulation - introducing a regulatory body and set of minimum standards for umbrella companies to ensure the protection and fair treatment of contractors and their pay.
- Tackling tax non-compliance - How to drive out non-compliance in the umbrella sector and protect contractors from tax avoidance schemes and tax liabilities.
What do the Umbrella Consultation Paper Proposals Mean for Contractors?
If confirmed, defining and regulating umbrella companies should provide much greater protection for contractors engaged via umbrella companies.
Unethical practices such as salary skimming and retaining unclaimed holiday pay will likely be deemed illegal and should see an end to contractors being deprived of their legitimate income.
Proposals to tackle non-compliance and delegate more responsibility and liability to employment agencies and end clients for due diligence and compliance should also result in fewer unscrupulous umbrella companies and a significant reduction in risk for contractors.
Conclusion
At Champion Contractors, we advocate a more accountable and ethical umbrella company sector in the UK.
As a business that promotes and demonstrates compliance and transparency, the consultation paper represents an extremely positive move towards addressing non-compliance and the associated risks to contractors.
The proposed changes offer potential solutions to some of the long-standing challenges faced within the industry and provide contractors with the support, transparency and financial protection they require.
We'll keep a close eye on developments regarding the umbrella consultation paper, so look for updates as we know more.
For further information, contact the Champion Contractors team on 0161 703 2549 or email info@championcontractors.co.uk.
Alternatively, visit our website at https://www.champion-contractors.co.uk/ or follow us on LinkedIn.