You may be aware that the Government and HMRC are currently in discussions about the function of umbrella companies in the UK.
There has recently been some negativity surrounding the role of umbrella companies. It would appear that a small element of businesses who are operating unethically in this sector are giving the sector a bad name. There is also a lot of misunderstanding about the role umbrella companies play. It would appear that members of the government are making assumptions about our role in the UK workforce and believe that the purpose of an umbrella company is simply tax avoidance. Umbrella companies play a crucial role in providing thousands of contractors with proper employment status. There is little or no acknowledgement from the media or members of the government on this.
Keen to redress the balance and improve understanding of how the sector operates Exchequer Solutions have been getting involved. Along with a group of reputable, compliant umbrella companies and other partners we have been working to provide a clear picture of what we do and how we benefit those registered with us. We recently attended an event to answer questions, provide information and offer our input to HMRC.
Our Operations Director, Mike Lowndes was at the event, he said, “There is clearly a lot of misunderstanding surrounding what we do and how we operate. As always I would welcome any legislation that prevents unethical companies from operating however it is important that those who provide a valuable service are able to continue to do so. Hopefully by spending some time addressing some of the issues with HMRC and demonstrating our professionalism we can improve understanding of what we do and the reputation of the industry as a whole.”
“The key factor that seems to be forgotten all too often is that our umbrella employees benefit from having employment status. This can make a huge difference to individuals who, for example, are looking for a mortgage, have to take time off due to illness or those who take maternity leave. Ethical compliant umbrella companies pay relevant benefits and save workers vital time by easing the administrative burden on them.”
