Victoria Atkins, Financial Secretary to the Treasury, issued a written ministerial statement yesterday announcing a consultation on policy options to regulate umbrella companies and to tackle non-compliance in the market. This is amongst other objectives to ‘simplify’ and ‘modernise’ the tax system, with the intention to make the system fairer for taxpayers, work better for traders and challenge non-compliance.
This announcement builds from the mandate the government issued in autumn 2022, ‘to put tax simplification at the heart of policy making’, which was extended further by ‘first steps’ announced in the spring budget.
The details of the proposal and date of the consultation have yet to be announced, but the statement is very clear that options are to be outlined. The consultation follows a joint Call for evidence in 2021 by BEIS (now DBT), HMRC and HM Treasury, the responses to which are also due for publication.
Lawspeed welcomes the announcement and hopes that the regulatory approach taken will offer agencies greater certainty and confidence in the use of umbrella providers, so will await the detail of what is proposed, providing updates as and when they are available. In the ever-changing world of compliance, you can rely on Lawspeed’s recruitment law expertise to guide you through any updates and changes.
For more information on working with umbrella companies, you can access a webinar recording on this topic here. You can also contact us for more information.