Umbrella Companies – Parliament Business Questions

27 February 2015

The timing of the Chancellor’s announcement regarding the review of Employment Intermediaries Tax Relief on Expenses was raised in Parliament yesterday during Business Questions.

The following question was raised by Mrs Emma Lewell-Buck (Labour) and replied to by Mr William Hague (Conservatives):

Mrs Emma Lewell-Buck (South Shields) (Lab): Following a campaign by the Union of Construction, Allied Trades and Technicians, Labour colleagues and me, the Chancellor announced in his autumn statement a consultation on ….. umbrella payroll companies. However, recent written answers show that the Government intend only to tinker around the edges and will not close the loopholes that result in workers losing hundreds of pounds per month. Can the Leader of the House tell us when the Chancellor will formally announce his plans to the House ….?

Mr Hague: There will be many opportunities in the coming month to debate matters with the Chancellor, who is regularly in the House. It will be Treasury questions on 10 March and then, of course, he will present the Budget on 18 March. I do not know when the Chancellor intends to present his final conclusions on that, but we will have debates on the Budget so it will be possible to debate what is or is not in the Budget statement in the course of those debates. That will be the best opportunity for the hon. Lady.

The full Parliamentary Business Questions for 26th February is available at:

http://www.publications.parliament.uk/pa/cm201415/cmhansrd/cm150226/debtext/150226-0001.htm#15022646000548

Here at Umbrella.co.uk we are part of an Employment Intermediaries syndicate that has responded to the HMRC review of Travel and Subsistence Expenses. We and other Umbrella Companies have raised our concerns regarding the lack of understanding by Labour and the Trade Unions in to the role of Umbrella Companies in the UK short term contract market.