Today, the Government unveiled its response to the eagerly awaited Consultation regarding the future regulation of the umbrella market. Contrary to industry expectations, the release did not set out fully formed proposals but rather explained HMRC’s preferred direction of travel.
In the summary of tax technical changes, Government committed to deliver a comprehensive response to the Consultation “in due course,” and new guidance for workers in 2024. Alongside this, Government will develop an online pay-checking tool to help umbrella workers scrutinise deductions from their pay.
Statutory Due Diligence is being considered
The Government are considering statutory due diligence requirements for businesses working with umbrella companies. However, further discussions with stakeholders, including recruitment and labour industry leaders are necessary before any decision is finalised.