Professional Passport

Crawford Temple warns that changes to the NICs threshold will open the floodgates for tax avoidance schemes to proliferate, as unscrupulous umbrella companies promise unrealistic returns to workers who are seeing their legitimate earnings decrease:

Crawford Temple says that confirmation by the chancellor that we will see a rise in employers NICs, coupled with a reduction in the threshold, will have a detrimental impact on workers operating through umbrella companies: https://lnkd.in/e6sRVHPj

In light of the Government's pledge to tackle non-compliance in the umbrella industry and make agencies and end hirers responsible for ensuring umbrella employees pay the correct amount of tax from April 2026, Crawford Temple says the move will change the shape of the market significantly and will open the floodgates to more tax avoidance schemes so visible enforcement over the next 18 months is critical:

Crawford Temple says the government's plans to introduce legislation to change who is responsible for tax and national insurance liabilities when an employee uses an umbrella will change the shape of the market and heighten the importance of strict enforcement measures in the run-up to April 2026.

Crawford Temple told Global Recruiter that confirmation by the Chancellor that we will see a rise in employers NICs, coupled with a reduction in the threshold, will have a detrimental impact on workers operating through umbrella companies:

Crawford Temple says the tax hikes to employers NI together with the increase to the employment allowance could inadvertently strengthen the position of non-compliant providers in the market.

With plans announced in today’s budget to tackle umbrella “non-compliance” by “moving PAYE obligations” to agencies, or end-users if there’s no agency, Crawford Temple says the move presents a number of challenges to agencies and will also ramp up the need for robust enforcement measures in the run up to April 2026 when the policy comes into effect.

Did your team get a great result over the weekend? Were you a Brentford or a Manchester United? We’ve had nothing but great results for the last 17 years 😊 We are proud of the FACT, not one agency or end client has suffered a debt transfer loss when they have worked with an approved Professional Passport Umbrella Company.

Why businesses choose Professional Passport, thank you to Terry Hillier People Group Services 😊 "As a trusted leader in the employment services sector, People Group Services is committed to ensuring compliance, transparency, and best practices in everything we do. That’s why we’re proud to partner with Professional Passport, the UK’s leading provider of independent compliance accreditation. Professional Passport’s robust auditing and stringent compliance checks have given our clients and contractors the confidence and peace of mind they deserve. Crawford Temple, ‘Mr PP’ himself has consistently demonstrated unparalleled knowledge and a proactive approach to navigating the complexities of ‘ever changing’ employment law and UK tax regulations, ensuring that we remain at the forefront of industry standards. With their accredited seal of approval, we confidently showcase our joint employment model as not only compliant but a hardy alternative to traditional umbrella companies and in-house PAYE solutions. PP’s dedication to safeguarding the interests of contractors, agencies, and end-hirers has made them an indispensable ally in our mission to deliver excellence in employment solutions. We highly recommend Professional Passport to any recruitment business or end-user looking for a trusted, compliance-driven partner. Their unwavering commitment to upholding the highest standards has made a remarkable difference in our operations, enabling us to focus on what matters most: delivering outstanding service to our clients. Oh, and the best bit about this independent compliance standard is that Professional Passport cannot be bought. Exacting criteria and proven real-time examples must be adhered to, or you simply DO NOT qualify.”

The Government has opened a consultation on how reforms to zero-hours contracts should apply to agency workers but Crawford Temple says the consultation appears to fall short in addressing the true intricacies of modern workforce solutions with inadequate recognition of umbrella companies and joint employment scenarios: https://lnkd.in/d_hQfMvU.