On April 18th, the UK government will issue its long-awaited update to its "Tackling non-compliance in the umbrella company market" consultation paper.
Released in response to growing concerns over tax avoidance and exploitation within the UK temporary labour sector, the paper proposes regulatory reforms to enhance compliance and protect workers' rights.
The update announcement was confirmed in the Chancellor’s Spring Budget on March 6th, but what can we expect from the update?
Will Regulation be the Answer?
One of the key proposals outlined in the consultation paper is the implementation of stricter oversight and regulation of umbrella companies, including measures to improve transparency, accountability, and standards of conduct within the industry. By cracking down on non-compliant practices such as disguised remuneration schemes exploiting loopholes in tax legislation, the government aims to level the playing field and ensure fair treatment for workers.
The consultation paper also highlights the importance of collaboration between government agencies, regulatory bodies, and industry stakeholders in tackling non-compliance effectively. By fostering greater cooperation and information sharing, policymakers seek to enhance enforcement mechanisms and deter illicit activities within the umbrella company market.
In this context, umbrella payroll services that prioritise compliance stand to benefit from greater trust and legitimacy in the eyes of clients, workers, and regulatory authorities. By aligning their operations with regulatory requirements and implementing robust compliance measures, these services can position themselves as responsible and ethical partners in the modern employment ecosystem.
Compliance will be the key
In conclusion, the UK government's consultation paper on tackling non-compliance in the umbrella company market serves as a catalyst for actions on compliance within the industry.
At TJW Contract Solutions, we’ve been committed to compliance and transparency since our incorporation over ten years ago. Our Professional Passport Umbrella accreditation is an independent audit and evaluation standard that seeks to ensure robust compliance across all areas of applicable legislation and complete transparency to our agencies and contractors.
We also continually evaluate other industry accreditations and certifications to stay at the forefront of compliance and industry standards.
Whatever transpires from the government’s update, TJW is already operating legally, compliantly, and beyond the standards we perceive any regulatory body will require of umbrella companies.
By already addressing concerns related to tax avoidance, exploitation, and regulatory loopholes within the umbrella sector, TJW represents a compliant, transparent, and risk-free solution for contractors, agencies, and hirers.
If you want to know how TJW Contract Solutions provides a compliant and transparent payroll solution for contractors and agencies, call the TJW team on 01784 270300. We’re always happy to help.
Alternatively, visit our website at https://www.tjwcontracts.co.uk/ or follow us on LinkedIn.
