The regulation of umbrella companies in the UK is currently the responsibility of several different government agencies, depending on the specific issue. For example, the Financial Conduct Authority (FCA) is responsible for regulating financial services, while Her Majesty’s Revenue and Customs (HMRC) is responsible for collecting taxes. Other agencies, such as the Gangmasters and Labour Abuse Authority (GLAA) and the Employment Agency Standards Inspectorate (EAS), also have roles in regulating umbrella companies.

There have been calls for the creation of a single enforcement body to oversee the regulation of umbrella companies and other forms of employment intermediaries. The idea is that a single body would be better equipped to enforce the rules and regulations related to these companies, and would reduce confusion and overlap among the various agencies that currently have a role in regulation.

However, creating a single enforcement body would require a significant reorganization of government agencies and would likely face significant political and logistical challenges. Also, it would require government agencies to give up some of their power and responsibilities and also, the government will have to identify the resources required for such an effort. As of now, it is uncertain if such a move is going to happen in the near future.

In absence of proper regulation, it’s imperative that recruiters and end clients understand what is happening in their supply chain.

Contact info@umbrellacheck.org.uk to discuss how we can offer oversight and protection from the risks of serious supply chain noncompliance.