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9th July 2010 : Laws umbrella companies might like to see repealed
I saw this article: What will umbrella companies submit to 'Your Freedom'? and it got me to thinking about what actual laws as a company we'd like to see disappear. There is one obvious law all umbrella companies would like to see repealed and that's the MSC legislation, but we have to keep realistic, that's not something that is ever going to happen. So I went around and asked various people in the company for their points of view on the subject.
Duncan, IT Director
"I would like to see the construction industry scheme scrapped, it's just too complicated. What makes construction workers so special that they require a whole tax system to themselves? Either apply the same rule to all self-employed workers or get rid of it entirely."
"One thing I'd like to see stopped and it's not really a law are the employment rules laid down by the ODA concerning the Olympic construction sites and Terminal 5. Currently they are not allowing any self employed workers or employed workers working through a third party like an umbrella company. It's a ridiculously restrictive practice, why if someone has been checked and has all the right insurance in place should they not be able to work on these projects?"
"It would be good to see the 24 month rule changed or clarified there are far too many grey areas in the tax system as it stands so having some solid black and white rules would be a refreshing change. I'd also be very happy to see speed cameras go."
Susan, HR Manager
"There are hardly any laws I would want to see reversed as I can understand and appreciate the justifications behind most. Mobile phone use whilst driving, Health and Safety risk assessments, these kind of laws are clearly for the safety and protection of people and that's pretty much what I'm all about. However, if I could rant about any 'law' it would be towards the proposed Agency Workers Directive coming in within the next two years. Agencies and Clients alike are going to have to jump through hoops if a temp stays in the same place for longer than 12 weeks. My fear is what this will do to the temp market. No assignments for longer than 12 weeks to step around the Directive? or perhaps not bother with temps at all and just take on permanent staff and dismiss within the first year (during which no unfair dismissal claim can be brought). Every time I think about it I get more concerned, how many temps out there are actually waiting with glee to bring their first AWD claim? What will this do to small niche agencies that just can't cope with another red tape element to navigate."
"If I could bring a law in though it would be along the lines of - if HMRC aren't going to use a piece of legislation i.e. actually prosecute when it is clearly being breached - scrap the law. It's not fair on the rest of us who do comply, if government bodies don't enforce the law with those who just thought they could get away with staying as they were."
"And my final point is about yellow lines on the road - double, single. - I can't see the difference!!!!"
Jacquie, Payroll Manager
"CIS should go, construction workers have always been treated differently. When I started before CIS there were the 714's and the SE60's, it's just unfair and complicates the collection of tax unnecessarily. The construction worker holiday pay scheme does of course go the other way, why treat two sectors who are essentially operating the same way differently?"
"The AWD is going to cause so many problems for recruitment companies and anyone looking to employ temporary workers I'd like to see it stopped. That's even despite the fact it could be positive for umbrella companies in general. Of course it can't be stopped because it's set down by the European Parliament, but hopefully the new government will be able to amend it."
Hugo
I agree with everyone else here so I'm not going to go back over that, but I would love to see the tax systems of this country tightened up. I don't mean made stricter but much more clearly defined. I said before that wanting the MSC legislation repealed is unrealistic, but clearly defining the transfer of debt legislation would reduce so much beauracracy and uncertainty within the recruitment industry. It's a waste of time and money that both could be spent expanding the economy.
Have a great weekend folks, don't get too hot!
Hugo
@GabemUmbrella
09/07/2010
