APSCo Question Balls
APSCo Question Balls
Commenting on the recent suggestion made by Shadow Chancellor, Ed Balls that the Government should fund the postponement of January’s planned fuel duty rise by clamping down on tax avoidance by umbrella companies, APSCo’sCEO, Ann Swain says:
“Ed Balls’ assertions regarding a growing problem of employment agencies forcing workers to become employees of umbrella companies, and that umbrella companies are profiting from falsifying workers expenses and thus avoiding tax and NI are a huge generalisation of a large and complex market.
APSCo’s members provide recruitment services at the highly-paid, professional end of the market, although we are concerned about the lower-paid more vulnerable sectors of the staffing industry where workers are sometimes forced into setting up their own personal service company or becoming employees of an umbrella company, and we would strongly support all efforts to curtail such behaviour. We would stress, however, that this behaviour is not indicative of the industry as a whole, and particularly not the professional staffing sector, where individuals choose to work through limited companies to provide business consultancy services.
APSCo is very aware that there are unscrupulous umbrella companies out there that choose to act outside of the law, which is why all APSCo’s umbrella affiliate members are required to undergo a rigorous compliance check before becoming members, and on a regular basis thereafter.”
APSCo takes the compliance of its umbrella companies extremely seriously, and encourages and supports all efforts to improve the standard of such services. We believe that the majority of umbrella companies work within the law, and we would not want to see yet more legislative change, which seeks to address a specific problem, and yet by the nature of its “one size fits all” approach damages the whole freelance sector, which is extremely important to the UK economy.
APSCo has already met with Government twice in recent months to discuss the thorny issue of tax avoidance, and how this might be dealt with within the industry, and we have asked Ed Balls for a meeting to discuss the differences within the industry. We will continue to lobby on behalf of members and affiliate members, to get the professional staffing sector’s unique viewpoint across.