2024 represents an opportunity for the UK’s temporary labour sector to elevate its reputation and raise standards.
The government's focus on the sector in 2023 is only likely to intensify during 2024, especially with a general election scheduled for later in the year. The issues that have dogged the sector, such as employment rights, unethical practices, and tax avoidance, will all likely get more exposure as the government looks to score political points and gain favour.
Contract Assignment Longevity will be Critical.
For our agency partners, we understand that keeping your contractors on assignments for the entire duration will be critical. It protects and enhances your reputation with your client and helps forecast and manage revenue, which is vital when business is slow.
In our recent article on LinkedIn, we highlighted the importance of the onboarding process when a contractor signs up with an umbrella company. We believe this process will be even more important for all parties in the coming year. You can read the article here.
NIC Reductions and Potential Tax Breaks.
2024 has already seen the introduction of a reduction in employees' National Insurance Contributions (NICs), with class 1 NICs reducing from 12% to 10% as of the 6th of January.
Changes like this are significant for contractors as they mean an increase in take-home pay; however, they also add administration for umbrella companies and agencies. With more changes scheduled for later this year, the team at TJW will work closely with our agency partners to ensure we update them with any changes and the required actions.
TJW Staying One Step Ahead.
According to TJW’s Managing Director, Tracey Williams, the need to be ahead of the curve and prepared for changes in the sector cannot be underestimated.
Tracey stated, “The umbrella sector has attracted much scrutiny recently, especially with the government’s consultation paper, which closed last year. I can’t see this changing in the short term, and I think compliance and control will become the cornerstone of the relationship between the agency and the umbrella company.
We’ve got several initiatives that we’ll be rolling out in the coming months, which will address both.
We’ll supplement our services and solutions with additional processes to help our agency partners demonstrate compliance. We’re also continually reviewing our processes to ensure that our interactions with agencies and contractors are simple and efficient, allowing them to concentrate on core activities.
In doing so, we’ll be able to provide solutions that present zero risk and maximum reward to contractors, agencies, and engagers.”
To find out how TJW can help to improve the success and longevity of your contractors' assignments, call the TJW Contract Solutions team at 01784 270300. We’re always happy to help.
Alternatively, visit our website at https://www.tjwcontracts.co.uk/ or follow us on LinkedIn.
