The government has finalized its consultation regarding the regulation of umbrella companies, aiming to create clearer definitions and responsibilities in the contractor supply chain. It plans to amend the Employment Rights Bill, which will bring umbrella companies under the jurisdiction of the Employment Agency Standards Inspectorate (EASI). Additionally, recruitment agencies will now be tasked with ensuring correct Pay As You Earn (PAYE) compliance for workers, which the government estimates could generate £895m in tax revenue by the 2026/2027 fiscal year. These steps aim to enhance protection for workers engaged through umbrella companies.
The government’s new measures aim to regulate umbrella companies by amending the Employment Rights Bill and shifting PAYE responsibility to recruitment agencies.
The changes are expected to generate £895m in additional tax by 2026/2027, tightening regulations around umbrella companies and protecting workers’ rights.
#umbrella-companies #tax-compliance #employment-rights #government-regulation #contractor-supply-chain
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