The Government have launched an open consultation into the role of umbrella companies in the UK labour market. This is a move to better understand the industry and how umbrella’s interact with the tax and employment laws set out within our legal systems. The consultation invites multiple stakeholders’ to get involved by answering a series of questions. The “Call for Evidence: Umbrella Company Market” paperwork that has been released provides an overview of the umbrella company market place and states the concerns that have been raised within the industry. The government have described the consultation as a way of trying to identify “the role that umbrella companies play in the labour market, and they interact with the tax and employment rights systems”

Nick Pilgrim, MD of EEBS writes “I welcome the news of this consultation – it’s good news for (the relatively few of us) who provide compliant transparent solutions to the industry. EEBS have specialised in the construction labour market for over 20 years it has become increasingly frustrating to witness the malpractice and shoddy behaviours that have inevitably led to poor outcomes for customers of unscrupulous suppliers. What’s important and positive about this consultation is that the government are seeking information directly from those that have experience with the Umbrella providers (of which we at EEBS as a contracting intermediary have always been sceptical) giving contractors, freelancers, temporary and agency workers an opportunity to contribute by answering questions from the official call for evidence document. I hope the consultation leads to good practices being identified and those with unethical behaviours being removed from the market entirely.”

Ways to respond to the consultation
Email to: umbrellacompanyevidence@hmtreasury.gov.uk

Write to: Umbrella Company Call for Evidence
Personal Tax Team
HM Treasury
1 Horse Guards Road
London
SW1A 2HQ