Government opens umbrella working consultation

Contractors and agencies are being encouraged to share their views in a new consultation on umbrella working.

Umbrella companies support the flexible labour market by providing employment services for temporary workers.

When you work for yourself and you only get paid for the time you work, it can be difficult to switch off from work.

Editor | 10 December 2021
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New figures show that HMRC pays most of its temporary workers through umbrella companies.

However, the UK tax authority has denied that it has a partial outside-IR35 hiring ban in place.

HMRC’s accounts, which run to the end of March 2021, show that the taxman engaged 403 temporary workers in one year. Of this number, only 15 were classed as ‘inside IR35’, which means they were operating through a limited company, but paying tax and National Insurance contributions like an employee.