Call for evidence on umbrella companies

The government is asking for views on the role that umbrella companies play in the labour market as well as how they interact with employment tax and employment rights. It also seeks views on the government’s understanding of the behaviours in the market that are causing concern.

Welcoming the cross-departmental call for evidence the Low Incomes Tax Reform Group (LITRG) hoped this would eventually lead to an end to the problem of low-paid agency workers being paid through disguised remuneration.

Meredith McCammond technical officer at LITRG said: ‘This consultative approach by government is a great opportunity for it to gather evidence about the actual and current problems with umbrella companies. This must include first-hand evidence from workers who have found themselves in a disguised remuneration scheme. We encourage the government to think creatively about how they can gather insight directly from workers.’