Danbro umbrella

The UK umbrella employment market is often under scrutiny. Unfortunately, as with any industry, there are those who act in bad faith. And, in so doing, they stain the landscape in which legitimate, reputable providers operate. Despite strong regulation and the airing of concerns by industry leaders and accreditors like the FCSA, non-compliance has been an issue for a long time.

That’s why the government initiated a consultation aimed at tackling non-compliance head on. The objective was clear: ensure a level playing field for all. It’s an attempt by the state to protect the reputation of the industry and provide security to workers, businesses, and taxpayers from non-compliance within the sector. And it’s a move that’s welcomed by many leading umbrella companies, including Danbro.

“We view this consultation as a positive step towards ensuring transparency and compliance across the board,” says the Danbro Group’s CEO, Helen Broughton MBE DL.

Contents

1. Making a commitment to Integrity & Fair Play

For those who might not be familiar, the consultation ran from June to August 2023. Since its inception, the dialogue has aimed to involve stakeholders within the contractor supply chain, deliberating on matters such as the legal definition of an umbrella company and the potential restrictions on allowable payment methods within the chain.

Several options are being considered, including the mandate for supply chain compliance through due diligence – the specifics of which are not yet known. The idea of introducing legislation to facilitate the transfer of debt is also in the mix. This essentially means that another business in the supply chain might bear the responsibility for uncollected income tax and NICs. Such a move could revolutionise the sector by ensuring the integrity of the supply chain and eradicating unscrupulous tax avoidance schemes.

Given the nature of this consultation, and the ongoing deliberations, speculation abounds. In the meantime, HMRC and the Treasury are poring over dozens of questions, umpteen volumes of evidence, and viewpoints from all corners before delivering their recommendations.

Whilst we await the outcome, though, it’s important that agencies, end clients, umbrella companies, and workers prepare for – and keep themselves abreast of – any potential shifts. Whether it’s the transfer of tax debt or the implementation of more stringent due diligence; the more informed you are, the better you’ll be able to handle any forthcoming changes.

2. Danbro's Unwavering Commitment to Compliance

“We not only welcome the government’s focus on compliance but also look forward to playing a proactive role moving forward,” Helen continues. “While we await further clarity, our message to our partners, clients, and associates is one of reassurance. Along with many of our contemporaries, we will continue to stand by the principles of transparency, integrity, and compliance, as we have done for almost 25 years in the industry.”

Danbro have always championed the ethos of compliance and warned against the dangers of bad actors in our industry. We’re dedicated to offering specialist guidance and expertise, ensuring our clients benefit from a seamless, high quality – and compliant! – service. As the landscape evolves, our commitment to these values remains unwavering.

To explore how our leading umbrella solution can elevate your contracting career, get in touch.

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Sam Wright
Article written by
Sam Wright
Marketing Manager
8 February, 2024
Sam Wright is Danbro’s Marketing Manager. He produces regular content and feature articles on our digital and non-digital channels – and social platforms – for the Danbro Group and its subsidiaries, as well as having responsibility for the Company’s internal and external communications. His background is in Journalism and Creative Writing, having previously contributed to publications such as The Daily Post, The Lancashire Evening Post, and The Blackpool Gazette. He is a keen swimmer and avid Manchester United fan (but don’t hold that against him), and he lives in Lancashire with his wife, Sarah.

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