Umbrella legislation

How Umbrella Legislation Has Evolved over the Last Two Decade

Legislation, regulatory bodies, and accreditations have been widely discussed and disputed within the payroll and associated markets. Further compliance and regulation within the umbrella sector is something that many organisations and industry leaders are advocating to be introduced. Whilst many feel that the industry is “un-regulated” the recent publication of “The Good, The Bad and The Ugly” by Professional Passport highlighted the evolution of umbrella legislation and regulation over the last two decades. The publication of this document looked to address all the current issues associated with “non-compliance” within the umbrella and payment intermediary sector markets. From assessing the current and long term development of the industry to assessing the key legislative changes that have occurred over the last 20 years.

Bishopsgate have used the information and data found within this publication to graphically demonstrate how umbrella legislation has evolved over the last two decades.

Whilst many still feel the sector requires an independent body to oversee the practices of umbrella companies, we cannot dismiss the fact that much of the legislation brought in by the UK government over the last two decades has helped shape and control the activities of umbrella companies and their clients to ensure they act in a compliant and transparent manner.

Significant changes have occurred over the last two decades that have contributed to eradicating poor practice within the sector. From the introduction of SDC to off-payroll legislation now applying within the private sector. All changes, however large or small, have enabled better ways of working to be implemented and prevent non-compliant operators from entering and abusing the market. Whilst the changes that have been introduced may still not be deemed enough, with many industry leaders calling for the introduction of an independent regulatory body, these are still steps in the right direction for ensuring that umbrella providers are operating compliantly, transparently, and ethically within their markets.

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