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The umbrella company consultation: tackling non-compliance

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The government is consulting on policy options to regulate and tackle non-compliance in the umbrella company market. This wide-ranging consultation focuses on three principal areas: employment rights; tackling tax non-compliance in the temporary labour market; and targeted options to address tax non-compliance, including changes to the employment allowance and VAT flat-rate scheme both of which are used by mini-umbrella companies. The consultation is, in effect, a wholesale review of how the supply of temporary labour should be made compliant. It will take time to implement, but it is encouraging that the process has at least begun.

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