The umbrella debate – Seconds out : Round 101 and counting…

Sad, but inevitable, to see the old battle-lines again, as the industry mammoths revert to their usual posturing’s, https://bit.ly/3memVJE

TUC dogma spoils the humanistic approach. Strategic fear of financial extinction from the Umbrella corner.
Seconds out: Round 101 and counting!

But what of the silent 3rd party: The humble taxpayer?

After the billions spent by the government on corporate and individual economic support and health preservation due to the COVID pandemic, we all know that the tax take needs to increase dramatically over the next few years to start to pay back those massive loans.

So in such times, it is clear that tax avoidance schemes based upon outdated, unenforceable compliance rules (which thence encourage unscrupulous abuse and misuse) are the kind of low-hanging fruit that needs to be harvested.

And whilst some would say “not before time”, this should not be about winning or losing the battle between the neanderthal bruisers, but about solving the right problem.
Disguised employment is simply just a ruse to improve the net pay of the (relative) few at the expense of the silent majority.

Be it, presenters at the BBC; IR35 loophole chasers, or agency workers seeking an extra bob or two, at the end of the day it is just the age-old game of tax minimisation.

So enough of this squabbling. As Canute demonstrated with the tide, it is folly to fight against the inevitable. The simplification of the tax system and loophole removal is the way forward for the 21st Century, nationally and internationally, else these vast government loans will be the millstone around the neck of our children’s children and beyond.

Let the cry go out that PAYE/NI as early as possible in the staffing supply chain should be the norm and any deviation can only exist in the most exceptional of circumstances. The KISS principle is the solution to the right problem and will let the playing field be flatter, rather than distorted by tax avoidance schemes, loophole ruses, and disguised employment constructions.

Back Office Support Services has no dog in this fight. We do both PAYE/NI and/or Umbrella equally well anyway, for our recruitment agency client base. But the time has come for the recruitment industry to step up to the mark and loudly call for that flat playing field, not tilting at misleading windmills like weeding out non-compliant umbrella companies. Let’s solve the right problem and not leave the mess for the next.

Like to find out more? Just talk to any of our team on 01260 280 290 or just drop us an email. 

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