Treasury stands up for the Umbrella

During Monday’s parliamentary questions there was a written question of Conservative MP to Aberconwy Guto Bebb 

“what steps his Department is taking to stop agencies using umbrella companies to manage the payroll function of companies within the construction industry”

The question fro Guto Bebb some after the Welsh Assembly stepped in and banned contractors working on government project from using Umbrella companies. So the timing of the question is very relevant.

The response from David Gauke was written and clearly states HMRC’s position on Umbrella Companies

“Umbrella companies have been a part of the UK labour market for many years and, when operated responsibly, provide a useful conduit through which payments, including tax, can be made. As such, Her Majesty’s Revenue and Customs (HMRC) are not taking steps to stop agencies using umbrella companies to manage the payroll function of companies within the construction industry.”

Hamilton Bradbury welcomes David’s response and it’s refreshing to hear the government understands the role of umbrellas in the marketplace.