027 Umbrella Regulation - Some Quick Wins

This is the second of our two-part special chatting about the unregulated umbrella sector with industry expert Crawford Temple.  We rejoin the conversation discussing the lack of enforcement in the sector and the detrimental impact this is having.  We go on to discuss some quick-wins that HMRC could easily implement which would support and empower workers whilst also raising standards in the sector.

Here are some of the key takeaways from part 2:

• It is fundamentally wrong that HMRC is going after workers rather than scheme promoters, plus workers are less able to tackle HMRC themselves (compared to scheme promoters who have access advice from specialist tax experts);
• None of the compliance issues within the umbrella sector are new, legislation already exists to tackle most of them – so better enforcement is needed;
• Effective umbrella sector regulation will take years to develop and implement, the sector must not be left untackled in the meantime;
• Workers should ensure that they always receive a payslips – dubious providers may be reluctant to give them but it’s your legal right;
• Workers MUST regularly check their personal tax record with HMRC to ensure that their tax and NICs is being paid properly.

Resources

Part 1 of our conversation, episode 026 is available here

The report “The Good, The Bad, And The Ugly” is available here

The factsheet “Working through an umbrella company” is available here

About Crawford Temple

Crawford has some 25 years experience in the umbrella sector and is owner of Professional Passport, the largest independent assessor of payment intermediary compliance.  He is an expert in compliance and risk management across all sectors of the temporary workers market including contractors, recruitment companies, end clients and providers.

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