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They were put on warning in the recent Autumn Statement that the Government intended to consult on 'the use of so called ‘umbrella companies’ to deprive people of basic employment rights like the minimum wage and avoid tax'.
While this was generally welcomed, compliant umbrellas were concerned that the 'sledge hammer to crack a nut' approach could impact on them also. (See: AS2014 (3): Crackdown on umbrellas with review on home-to-work travel - Shout99, Dec 2014)
Many were expecting further information on the Government’s in the draft Finance Bill 2015, but the only noticeable reference in the overview was that there would be a discussion paper published in the near future.
Founder and CEO of umbrella group, Parasol, Rob Crossland said: “It seems we will have to wait a little longer to pore over the detail of the Government’s plans.
“The sooner we get this the better – particularly as the Government is considering taking action as early as Budget 2015.
“We look forward to finding out more about the Government’s proposals. The forthcoming discussion paper and consultation represent a rare opportunity to educate policymakers on the nuances and realities of the professional contractor employment services sector.
“Specifically, it will be a chance to make the point that not all umbrella companies are exploitative cowboys. Many providers, including Parasol, offer skilled contractors and freelancers genuine support and are a vital cog in the contingent recruitment supply chain.”
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Susie Hughes © Shout99 2014
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