In a new policy paper published on the 18th of April the government announced a package of technical tax policy proposals that supports its ambition to make the tax system fairer and tackle non-compliance. This includes a measure for tackling Non-Compliance in the Umbrella Market.
In the policy it states that “The government remains concerned about the scale of non-compliance in the umbrella company market, and the detrimental impact that this has on workers, taxpayers and the labour market. Last summer, the government consulted on options to reduce tax non-compliance in the market and will publish a response to its consultation in due course.”
A new online pay checking tool
To start tackling the non-compliance, a new online pay checking tool has been announced to help umbrella company workers check whether the correct deductions are being made from their pay. Once this tool is available, GIFCO will be recommending that our workers use this tool for total transparency and compliance.
The government is set to introduce a due diligence requirement to drive out bad actors from labour supply chains. The policy states that the government “will continue to engage with the recruitment industry and other key stakeholders on the detail of a statutory due diligence regime for businesses that use umbrella companies, and ensure it has the best understanding of the impacts that this could have on reducing non-compliance.”
You can read the full policy paper here on the Gov.uk website:
GIFCO remains observant of these policy changes and will ensure we remain completely compliant with HMRC. If you have any concerns about compliance in the Umbrella industry please contact us.