Tax Avoidance

(asked on 28th June 2021) - View Source

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the adequacy of the regulations in place for umbrella companies.


Answered by
Paul Scully Portrait
Paul Scully
This question was answered on 6th July 2021

The Government remains committed to tackling those who use umbrella company arrangements as part of abusive tax avoidance schemes. In the Finance Act 2021, the Government introduced a package of measures to strengthen existing anti-avoidance regimes and tighten the rules designed to tackle promoters and enablers of tax avoidance schemes. On 23 March 2021, the Government launched a consultation on a further package of measures to tackle promoters and the UK entities that support them. We will be publishing a summary of responses to this consultation and next steps in due course.

In addition to this, the Government has already taken steps to improve transparency for agency workers, including those employed by umbrella companies, by bringing in the Key Information Document from 6 April 2020. The Government has also committed to expand state enforcement for agency workers to cover umbrella companies, which will enable inspectors to investigate relevant complaints involving umbrella companies and take enforcement action where required. This will require primary legislation which the Government will bring forward in due course.

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