Header logo
Log in
Umbrella regulation in precarious position after tax admin day

Umbrella regulation in “precarious position” after tax admin day

Proposals for an umbrella company due diligence regime are in a “precarious position” unless government shows “urgency” to develop them, warns IPSE.

About us simpler
IPSE Press Office
18 Apr 2024
1 minutes
Share

Government proposals to enact a due diligence regime for the umbrella company market are in a “precarious position” unless government shows “urgency” to develop them, the contractor trade body warned today.

Updating industry on the progress of a consultation to tackle non-compliance in the umbrella companies market, government said that it was ‘minded to introduce a due diligence requirement to drive out bad actors from labour supply chains’.

It said it ‘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…’

Responding to the announcement, IPSE (the Association of Independent Professionals and the Self-Employed) expressed its support but warned that a lack of parliamentary time before an election puts the plans in a “precarious position”.

Andy Chamberlain, IPSE’s policy director, said: “It’s great that government is minded to do something about non-compliance in the umbrella company sector. Contractors want to see a regulated umbrella sector, and we’re ready to work with government to chalk up how a due diligence requirement could work.

“But we need some urgency from government. It’s been almost a year since it began consulting on the proposals – ones that should have been in place before the off-payroll working rules. With an election on the horizon, the plans are in a precarious position and risk being delayed even further.”

The latest self-employed news and opinion

Are self employed working people 2
Ambiguity takes hold as Starmer avoids self-employed tax question
+3 more

IPSE's Fred Hicks calls on the government to clarify who counts as a ‘working person' – as growing ambiguity leaves the self-employed increasingly uneasy about th...

24 Jul 2025
Fred H
Fred Hicks
Listing IPSE responds to pensions review self employed
IPSE reacts to new Pensions Commission’s focus on the self-employed
+2 more

The UK's self-employed membership body, IPSE, has praised the new Pensions Commission's "long-overdue" recognition of the self-employed pensions problem.

21 Jul 2025
About us simpler
IPSE Press Office
Flexible planning for self employed 2
Retirement on your terms: flexible planning for the self-employed
+2 more

Flexibility is one of the greatest advantages of the self-employed lifestyle. In this blog, financial planning experts Chase de Vere explain how, with the right s...

15 Jul 2025
Author default profile picture
Chase de Vere
IPSE-LOGO-HEADER

Join our newsletter

Registered in England and Wales, no 03770926. 4th Floor, 95 Gresham Street, City of London, London EC2V 7AB