We live in uncertain times and this week looks to be a critical one for our economy as a second possible lockdown looms. As we start to emerge from the last one, the signs of demand for contingent workers seems to be gaining much faster traction then the rate at which permanent employees are converting back into office life. Whilst the government showed us last week that PAYE contributions had slowed down significantly in the last quarter, the number of employees moving into umbrella models show substantial gains.
The economy is in recession, but umbrella, PSC, and CIS employment models remain robust as end hirers seek to emerge in to profit by using flexible, compliant workforce solutions. An example of the value of the contractor workforce is discussed in a recent article in Contractor Weekly.
Since our last newsletter, I with the support of many of our members have been involved in valuable discussions with various government organisations.
Tackling Disguised Renumeration
I am grateful to our chair, Chris James of JSA, Janet De-Havilland of Pendragon Consultancy, and Matt Tyson of The Workr Group who joined me this month to assist HMRC in identifying and tackling disguised renumeration. HMRC has expressed their thanks for our contribution and will share their findings and recommendations with us soon. By helping to eliminate these practices, it positions FCSA Accredited Members as the lead compliant supply chain partners for the benefit of our member firms and their contractors.
Shaping future umbrella regulation
In addition Chris and I met with directors from the Labour Enforcement Group at BEIS to discuss how we can help to shape any future regulation around commercial umbrella bodies. More information about this meeting and upcoming meeting with Matthew Taylor is included in our new section below. I will keep you informed of progress.
Finally, I would also like to draw your attention to a number of other articles of interest in our new section below relating to the availability of a Job Retention Bonus claims guide recently published by the government and also concerns we have raised with BEIS in relation to Statutory Sick Pay and its impact on umbrellas.
Phil Pluck, FCSA Chief Executive