The Low Incomes Tax Reform Group (LITRG) today publishes a new research report looking at the use of umbrella companies and other labour market intermediaries in the UK. The factual and technical report also considers the nature and scale of disguised remuneration schemes. It is intended to help increase public knowledge of how labour market intermediaries work and bolster the evidence base in this under-researched area.
In the 150-page report, LITRG takes a deep dive into the world of labour market intermediaries, with a large focus on umbrella companies. The report is issued ahead of the 6 April 2021 off-payroll changes which are expected to see many private sector contractors shift away from working through their own limited companies towards working through an umbrella company.
LITRG’s research included talking with sector experts, reviewing umbrella company offerings and posts in contractor forums and mining the group’s own query database for evidence.
The resulting report explores the benefits and complexities of umbrella companies. The report also explores other types of labour market intermediaries and the use of disguised remuneration schemes which are used to pay workers instead of traditional wages.
It is a factual report and does not seek to draw conclusions or make recommendations. You can read the full document here.