{"id":597029,"date":"2023-01-13T05:49:41","date_gmt":"2023-01-13T11:49:41","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/01\/13\/government-accused-of-leaving-umbrella-company-regulation-in-limbo-by-shelving-enforcement-body\/"},"modified":"2023-01-13T05:49:41","modified_gmt":"2023-01-13T11:49:41","slug":"government-accused-of-leaving-umbrella-company-regulation-in-limbo-by-shelving-enforcement-body","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/01\/13\/government-accused-of-leaving-umbrella-company-regulation-in-limbo-by-shelving-enforcement-body\/","title":{"rendered":"Government accused of leaving umbrella company regulation in limbo by shelving enforcement body"},"content":{"rendered":"<div id=\"content-header\">\n<h2>The UK government is coming under pressure to reveal the state of its plans to regulate umbrella companies after it emerged that the enforcement body it promised to create is unlikely to materialise<\/h2>\n<\/div>\n<div id=\"content-center\">\n<ul>\n<li><i data-icon=\"1\"><\/i><\/li>\n<li><i data-icon=\"2\"><\/i><\/li>\n<\/ul>\n<div id=\"contributors-block\">\n<p><img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/Caroline Donnelly.JPG\" alt=\"Caroline Donnelly\">\n\t\t\t\t\t<\/p>\n<p><span>By<\/span><\/p>\n<ul>\n<li>\n\t\t\t\t\t<a href=\"https:\/\/www.techtarget.com\/contributor\/Caroline-Donnelly\">Caroline Donnelly,<\/a><br \/>\n\t\t\t\t\t\t<span>Datacentre Editor <\/span>\n\t\t\t\t\t\t<\/li>\n<\/ul>\n<p>\n\tPublished: <span>12 Jan 2023 13:15<\/span>\n<\/p>\n<\/div>\n<section id=\"content-body\">\n<p>The UK government\u2019s commitment to protecting IT contractors from the <a href=\"https:\/\/www.computerweekly.com\/news\/252498600\/IR35-reforms-Slow-government-progress-on-umbrella-regulation-exposes-IT-contractors-to-tax-risks\">well-documented malpractice carried out by non-compliant umbrella companies<\/a> is being called into question, following the admission that plans to create an enforcement body to regulate such firms have been shelved.<\/p>\n<p>Business secretary Grant Shapps confirmed during a <a href=\"https:\/\/committees.parliament.uk\/oralevidence\/12457\/pdf\/\">House of Commons oral evidence session in mid-December 2022<\/a> that plans to create a Single Enforcement Body (SEB), the remit of which would include keeping tabs on non-compliant umbrella companies, had been put on hold.<\/p>\n<p>The <a href=\"https:\/\/www.computerweekly.com\/news\/252502230\/BEIS-confirms-rogue-umbrellas-will-be-covered-by-single-enforcement-bodys-clampdown-powers\">Department for Business, Energy and Industrial Strategy (BEIS) set out plans in June 2021<\/a> to create a \u201cpowerful watchdog\u201d that would see three major government agencies join forces to clampdown on workers\u2019 rights violations and provide support to umbrella company contractors.<\/p>\n<p>The agencies involved were set to include HM Revenue &#038; Customs (HMRC), the Gangmasters and Labour Abuse Authority, and the Employment Agency Standards Inspectorate (EASI), with BEIS talking up the move as a key step in its work to protect contractors from non-compliant umbrella companies.<\/p>\n<p>In response to a question about the department\u2019s commitment to creating the SEB, Shapps said departmental priorities had now shifted, as a result of the Covid-19 coronavirus pandemic and the relatively short amount of Parliamentary time left to deliver on its plans.<\/p>\n<p>\u201cGiven that we have spent more than two years of this Parliament fighting Covid-19, we have then seen the way that individual enforcement bodies are operating,\u201d he said, as detailed in a transcript from the session.<\/p>\n<p>\u201cIt may be that with two years left of the Parliament, we are still able to address Single Enforcement Bodies\u2026[although] we are more interested in ensuring that the bodies that are already in place are operating effectively.\u201d<\/p>\n<p>As alluded to by Shapps, Computer Weekly understands that one of the biggest barriers the government has faced when trying to create the SEB is that doing so would require legislation to be passed and \u2013 since it was first announced \u2013 there has been insufficient Parliamentary time set aside to do so.<\/p>\n<p>The government has come under growing pressure since announcing the SEB to provide updates on how its plans were progressing, <a href=\"https:\/\/www.computerweekly.com\/news\/252507586\/BEIS-urged-to-prioritise-funding-to-protect-umbrella-workers-in-government-Spending-Review\">as well as information on how the body would be funded<\/a>, from various contracting market stakeholders.<\/p>\n<p>As reported by Computer Weekly in May 2022, concerns the government\u2019s plans may have hit a stumbling block emerged after that month\u2019s Queen Speech failed to make any mention of an Employment Bill, <a href=\"https:\/\/www.computerweekly.com\/news\/252518037\/Queens-Speech-Employment-Bill-omission-suggests-further-delays-to-umbrella-market-regulation\">which may have provided a delivery timeline for the SEB<\/a>.<\/p>\n<p>In a series of posts on social networking site Twitter, the government\u2019s director of labour market enforcement Margaret Beels lamented the lack of references made during the Queen\u2019s Speech to the SEB, describing it as a \u201creal disappointment\u201d because it meant having to wait even longer for the necessary Parliamentary time to make it a reality.<\/p>\n<p>Computer Weekly contacted BEIS, on Beels\u2019 behalf, to see if she had any comment to make on the news that the SEB plan is now on hiatus and was told she would be unavailable for interview.<\/p>\n<p>A spokesperson for the department, however, did supply the following statement: \u201cThis government has a strong track record in supporting workers across the UK \u2013 from helping more people into work so there are now more employees on payroll than ever before, to raising the national living wage to its highest rate yet.\u201d<\/p>\n<p>The spokesperson added: \u201cAs well as working to ensure that existing bodies setup to protect workers\u2019 rights are operating effectively, we have also backed a number of reforms including guaranteeing one week\u2019s unpaid leave per year for carers, giving employees a right to request flexible working, extra redundancy protections for women, and a guarantee that hospitality staff get their tips in full.\u201d<\/p>\n<p>Even so, with recurring reports of non-compliant umbrella companies withholding holiday pay, taking unauthorised sums from contractor pay packets or <a href=\"https:\/\/www.computerweekly.com\/news\/252498279\/IR35-reforms-Confusion-over-who-pays-employers-NI-leaves-IT-contractors-out-of-pocket\">unwittingly involving participants in tax avoidance schemes<\/a>, the government\u2019s decision to shelve the SEB has not gone down well.<\/p>\n<p>Crawford Temple, CEO of independent umbrella company compliance assessment firm Professional Passport, told Computer Weekly of his disappointment at the government\u2019s decision not to press ahead with the creation of the SEB at this time.<\/p>\n<p>\u201cI am not entirely surprised, as it was always going to be difficult to achieve. With plans shelved, it is more vital than ever that the government now demonstrates its commitment to stamping out non-compliance and malpractice in our industry,\u201d he said.<\/p>\n<p>\u201cIt is shocking that [tax avoidance and disguised remuneration] schemes that lure workers into financial hardship when they can ill afford it are allowed to thrive.\u00a0The government continues to drag its feet on taking visible enforcement action to find the perpetrators of these schemes and close them down.\u201d<\/p>\n<p>It has also been almost a year since the UK government launched its call for evidence into how the umbrella company sector operates and its findings are still yet to be made public, continued Crawford.<\/p>\n<p>\u201cQuicker action, more resources and investment are needed if we are to clean up an industry that continues to attract negative headlines,\u201d he said.<\/p>\n<p>Rebecca Seeley Harris is a former senior policy adviser to the Office of Tax Simplification, who <a href=\"https:\/\/www.computerweekly.com\/news\/252500844\/IR35-reforms-Government-gifted-roadmap-to-umbrella-regulation-by-ex-senior-policy-adviser\">previously gifted the government a draft policy document to help it expedite<\/a> the process of regulating umbrella companies.<\/p>\n<p>Speaking to Computer Weekly, she said it was \u201call very well for Grant Shapps to vaguely mention that the SEB is not going ahead\u201d, but the government needs to give some serious thought about what to do in place of it.<\/p>\n<p>On this point, she said the logical thing to do would be to make the EASI responsible for the umbrella sector, <a href=\"https:\/\/www.computerweekly.com\/news\/252507586\/BEIS-urged-to-prioritise-funding-to-protect-umbrella-workers-in-government-Spending-Review\">given its remit includes protecting the rights of agency workers<\/a>. However, the Inspectorate would need extra funding to cover its additional responsibilities and there would be legislative piece to sort there too, she conceded.\u00a0<\/p>\n<p>\u201cEASI is really the only government body that can be responsible for the umbrella sector, and if it is going to be tasked with that, EASI would need extra funding,\u201d she said. \u201cThat would also depend on the extent of their activities, whether they are there simply to educate or whether they take on a more active function to penalise wrongdoing.<\/p>\n<p>\u201cThey would be responsible for both the regulation of the umbrella company and the protection of the worker. This would involve regulation\u2026 or amending the Conduct Regulations,\u201d she added.<\/p>\n<\/section>\n<section id=\"DigDeeperSplash\">\n<h4>\n\t\t\t<i data-icon=\"m\"><\/i>Read more on IT for consulting and business services<\/h4>\n<ul>\n<li><a id=\"DigDeeperItem-1\" href=\"https:\/\/www.computerweekly.com\/news\/252525685\/IR35-reforms-to-be-scrapped-What-IT-contractors-need-to-know\"><br \/>\n\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero Images\/HMRC-2-fotolia_searchsitetablet_520X173.jpg\" srcset=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/HMRC-2-fotolia_searchsitetablet_520X173.jpg 960w,https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/HMRC-2-fotolia.jpg 1280w\" alt ><\/p>\n<h5>IR35 reforms to be scrapped: What IT contractors need to know<\/h5>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/Caroline Donnelly.JPG\" alt=\"CarolineDonnelly\">\n\t\t\t\t\t\t\t\t\t<\/p>\n<p><span>By: <span>Caroline\u00a0Donnelly<\/span><\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/div>\n<p>\t\t\t\t<\/a><\/li>\n<li><a id=\"DigDeeperItem-2\" href=\"https:\/\/www.computerweekly.com\/news\/252525286\/Mini-Budget-2022-HMRC-tells-firms-to-update-payroll-software-now-before-November-NI-tax-cut\"><br \/>\n\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero Images\/Payroll-AdobeStock_97534163_searchsitetablet_520X173.jpg\" srcset=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/Payroll-AdobeStock_97534163_searchsitetablet_520X173.jpg 960w,https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/Payroll-AdobeStock_97534163.jpg 1280w\" alt ><\/p>\n<h5>Mini-Budget 2022: HMRC tells firms to update payroll software ahead of November NI tax cut<\/h5>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/Caroline Donnelly.JPG\" alt=\"CarolineDonnelly\">\n\t\t\t\t\t\t\t\t\t<\/p>\n<p><span>By: <span>Caroline\u00a0Donnelly<\/span><\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/div>\n<p>\t\t\t\t<\/a><\/li>\n<li><a id=\"DigDeeperItem-3\" href=\"https:\/\/www.computerweekly.com\/news\/252518037\/Queens-Speech-Employment-Bill-omission-suggests-further-delays-to-umbrella-market-regulation\"><br \/>\n\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/computerweekly\/weather-rain-umbrella-adobe_searchsitetablet_520X173.jpg\" srcset=\"https:\/\/cdn.ttgtmedia.com\/rms\/computerweekly\/weather-rain-umbrella-adobe_searchsitetablet_520X173.jpg 960w,https:\/\/cdn.ttgtmedia.com\/rms\/computerweekly\/weather-rain-umbrella-adobe.jpeg 1280w\" alt ><\/p>\n<h5>Queen\u2019s Speech: Employment Bill omission suggests further delays to umbrella market regulation<\/h5>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/computerweekly\/Caroline-Donnelly-CW-contributor-2022-140x180px.JPG\" alt=\"CarolineDonnelly\">\n\t\t\t\t\t\t\t\t\t<\/p>\n<p><span>By: <span>Caroline\u00a0Donnelly<\/span><\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/div>\n<p>\t\t\t\t<\/a><\/li>\n<li><a id=\"DigDeeperItem-4\" href=\"https:\/\/www.computerweekly.com\/news\/252513311\/Finance-Bill-Sub-Committee-blames-IR35-for-concerning-rise-in-umbrella-company-contractors\"><br \/>\n\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero Images\/HMRC-4-Fotolia_searchsitetablet_520X173.jpg\" srcset=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/HMRC-4-Fotolia_searchsitetablet_520X173.jpg 960w,https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/HMRC-4-Fotolia.jpg 1280w\" alt ><\/p>\n<h5>Finance Bill Sub-Committee blames IR35 for \u2018concerning\u2019 rise in umbrella company contractors<\/h5>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/computerweekly\/Caroline-Donnelly-CW-contributor-2022-140x180px.JPG\" alt=\"CarolineDonnelly\">\n\t\t\t\t\t\t\t\t\t<\/p>\n<p><span>By: <span>Caroline\u00a0Donnelly<\/span><\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/div>\n<p>\t\t\t\t<\/a><\/li>\n<\/ul>\n<\/section>\n<\/div>\n<p><a href=\"https:\/\/www.computerweekly.com\/news\/252529123\/Government-accused-of-leaving-umbrella-company-regulation-in-limbo-by-shelving-enforcement-body-plan\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><br \/>\n Gaylene Haslett<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The UK government is coming under pressure to reveal the state of its plans to regulate umbrella companies after it emerged that the enforcement body it promised to create is unlikely to materialise By Caroline Donnelly, Datacentre Editor Published: 12 Jan 2023 13:15 The UK government\u2019s commitment to protecting IT contractors from the well-documented malpractice<\/p>\n","protected":false},"author":1,"featured_media":597030,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[549,284,46],"tags":[],"class_list":{"0":"post-597029","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-accused","8":"category-government","9":"category-technology"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/597029","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=597029"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/597029\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/597030"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=597029"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=597029"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=597029"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}