"The vast bulk of respondents indicated that the use of an umbrella company is effectively compulsory in most cases. Some 88% said being paid via an umbrella company was the only option in their most recent engagement."
"Contractors are deeply unhappy about being forced into this position. Only 5% said they were happy to use an umbrella company, while 25% said they would never use one."
"The effect is that a lack of choice is impacting the market, with contractors declining roles or leaving altogether, and so reducing access to talent for hiring firms."
"Under Joint and Several Liability rules, organisations can be held responsible for unpaid tax where non-compliant umbrella companies are used, but JSL has not really reduced risk."
IT contractors are increasingly required to work through umbrella companies, often leading to tax compliance uncertainties and dissatisfaction among workers. A survey revealed that 88% of contractors had no choice but to use an umbrella company for their last engagement. Only 5% expressed satisfaction with this arrangement, while many would avoid it if possible. The situation is affecting the labor market, as contractors are declining roles, which in turn limits talent availability for hiring firms. Additionally, new Joint and Several Liability rules have not effectively mitigated risks for agencies and clients.
Read at ComputerWeekly.com
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