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This petition was submitted during the 2019 to 2024 Parliament

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Closed Ban the use of umbrella companies in the construction industry

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Umbrella companies must be banned as the care for workers is being further broken down amongst parties within the supply chain. This could help to ensure that employers continue to assume full responsibility for workers. This could also help to ensure that pay rates are inclusive of all deductions.

IR35 has pushed contractors/agencies towards the reliance on Umbrella companies to take on employer liability, and this can lead to the avoidance of IR35 scrutiny. As a result, this incurs additional deductions on workers rates such as Employers NI, Apprenticeship Levy (which isn't practical for the circumstances) as well as Payroll margin (which Umbrella companies claim to make a profit). This can reduce workers’ pay drastically as well as increase the volatility of the industry.

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  • Related activity

    Share your views on umbrella companies with the Government

    The Government is running a public consultation on the role that umbrella companies play in the labour market, and how they interact with the tax and employment rights systems.

    Find out more about the consultation, and share your views: https://www.gov.uk/government/consultations/call-for-evidence-umbrella-company-market.

    The consultation is open until 11:45pm on 22 February 2022.

    Who is running the consultation?

    The consultation is being run by HM Treasury, which is responsible for:

    • public spending
    • financial services policy
    • strategic oversight of the UK tax system
    • the delivery of infrastructure projects across the public sector and facilitating private sector investment into UK infrastructure
    • ensuring the economy is growing sustainably

    Find out more about the Treasury: https://www.gov.uk/government/organisations/hm-treasury/about

  • Petition closed

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    This petition can now be signed.

    If this petition gets 10,000 signatures, government will respond to it.

    If this petition gets 100,000 signatures, it will be considered for debate in Parliament.

    This petition will stay open until 23 October 2021.