Tackling non-compliance in the contingent labour supply chain

Key points

• New consultation issued in June considers the future regulation in the supply chain of workers.
• The government wants to deliver improved outcomes for workers protect against losses and support a level playing field.
• Importance of defining umbrella companies.
• Possible introduction of a mandatory due diligence requirement.
• Transfer of a tax debt from one business in the supply chain to another.
• The employment business supplying the worker to the end client could be deemed to be the employer.

On 6 June the Treasury issued a new consultation titled ‘Tackling non-compliance in the umbrella company market’ (tinyurl.com/hmtumbrellacondoc) but it would be a mistake to think it’s only of interest to umbrella companies. This could impact any organisation that hires temporary staff or is in a chain with contingent or off payroll labour.

The document sets out options for future regulation in the supply...