Guidance & Legislation Documents

Please find detailed below guidance and legislation documents relating to the umbrella industry.

Department for Business, Energy and Industrial Strategy Review and Revocation of the Swedish Derogation Model

Description of proposal: The Agency Worker Regulations 2010 (AWR) established a protective framework for temporary agency workers. Regulation 10 of the AWR, commonly known as the “Swedish Derogation”, allows agency workers to opt out of equal pay entitlements after twelve weeks of employment in exchange for compensatory payment between assignments. The Taylor Review of Modern Working Practices reported significant abuse of the Swedish derogation. Agency workers are not given the choice of their type of contract, either being forced to accept a derogation contract or receiving no work. The review states that, under the derogation, it is too easy for companies to avoid paying workers between assignments, by keeping them on longer assignments at reduced pay or by offering them unacceptable assignments when they are out of work. In light of these findings, this proposal aims to prevent businesses from abusing the Swedish derogation to avoid the requirement to offer agency workers equal pay.


Good Work Plan: establishing a new Single Enforcement Body for employment rights

October 2019 – Government has already committed to provide adequate funding for enforcement through the Spending Review. To carry out enforcement effectively, we need the right institutions in place. That is why, through this consultation, we want to consider the case for a new single labour market enforcement body…


Rules for off-payroll working from April 2020 – Explanatory note

Clause 1 and Schedule 1: Workers’ services provided through intermediaries Summary 1. This clause and Schedule amend Part 2 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003) to align the tax treatment for payments made for workers’ services provided through intermediaries where the client is a medium or large organisation outside the public sector with the tax treatment for payments made for workers’ services provided through intermediaries where the client is a public sector organisation.


HMRC issue briefing: charge on disguised remuneration loans

Disguised remuneration schemes are tax avoidance arrangements that seek to avoid Income Tax and National Insurance contributions (NICs) by paying scheme users their income in the form of loans. The loans were never intended to be repaid, so they are no different to normal income and are taxable. The charge on outstanding disguised remuneration loans – known as the ‘loan charge’ – was introduced to tackle the use of disguised remuneration schemes and came into effect on 5 April 2019. The charge applies to all loans made since 6 April 1999 if they are still outstanding on 5 April 2019 and the recipient has not settled the tax due. The loan charge policy package is expected to raise £3.2 billion and it has been estimated that 75% of this will come from employers, and 25% from individuals.

Find out more here.


Payslips: guidance on legislation in force from April 2019 requiring employers to include additional information on payslips

December 2018 – Guidance on legislation in force from April 2019 requiring employers to include additional information on payslips.