Submitted on Tuesday 11th July 2023
Rejected on Thursday 13th July 2023
Current status: Rejected
Rejection code: duplicate (see below for details)
Ban the use of umbrella companies for the subcontractors working outside of IR35
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.
More details
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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The Government e-Petitions Team gave the following reason:
There's already a petition about this issue. We cannot accept a new petition when we already have one about a very similar issue.
You are more likely to get action on this issue if you sign and share a single petition.
You may wish to sign this petition which calls for a similar action: petition.parliament.uk/petitions/638307
52.15.57.186 Thu, 07 Nov 2024 14:42:15 +0000
