Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, whether he plans to review the use of umbrella companies by employers and employment agencies.

HM Revenue and Customs (HMRC) checks that employers and employees are tax compliant by undertaking targeted compliance activity. In the temporary labour market, it has challenged non-compliant businesses with the effect that those businesses have changed their business model. HMRC continues to challenge umbrella companies who do not comply with their obligations.

There has been no recent assessment made on the effect of the growth of umbrella companies on tax revenues. The government does not have a record of the number of people registered to work specifically through umbrella companies.