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Umbrella Companies

EDM number 797 in 2015-16, proposed by Stephen Hepburn on 01/12/2015.
Categorised under the topics of Companies, Construction industry, Employment, Pay and Taxation.

That this House is concerned that construction workers forced to operate via umbrella companies need to brace themselves for a sharp reduction in take-home pay following the Chancellor of the Exchequer's Autumn Statement on 25 November 2015; notes that hidden in the 154 page document is the decision to ban workers employed via umbrella companies from receiving tax relief on their expenses, and that this change will take effect from 6 April 2016, meaning that from 2016-17 workers operating via an umbrella company will have to pay employer's national insurance, employee's national insurance and income tax on all of their eligible earnings, which is 45 per cent of their pay; further notes that, under the present arrangements, expenses for travel and subsistence form part of a worker's pay and therefore they avoid paying tax and national insurance contributions on this element of their income, and that a worker claiming £50 of expenses per week will see their pay fall by £22.50 per week, or £1,170 per year; believes that legitimate expenses should be paid on top of pay and not used to bulk out wages; considers that construction workers are already losing large amounts of money by being forced to operate via umbrella companies after they are recruited by employment agencies; regrets that Government policies do nothing to change that relationship; and further considers that a ban on exploitative umbrella companies is long overdue in construction and other sectors.

This motion has been signed by a total of 22 MPs.

MPDateConstituencyPartyType
Stephen Hepburn01/12/2015JarrowLabourProposed
Ronnie Campbell01/12/2015Blyth ValleyLabourSeconded
Peter Bottomley01/12/2015Worthing WestConservativeSeconded
Mark Durkan01/12/2015FoyleSocial Democratic and Labour PartySeconded
Mary Glindon02/12/2015North TynesideLabourSeconded
Martyn Day02/12/2015Linlithgow and East FalkirkScottish National PartySeconded
Alasdair McDonnell02/12/2015Belfast SouthSocial Democratic and Labour PartySigned
Chris Stephens03/12/2015Glasgow South WestScottish National PartySigned
Margaret Ritchie03/12/2015South DownSocial Democratic and Labour PartySigned
Nick Thomas-Symonds04/12/2015TorfaenLabourSigned
Alan Meale07/12/2015MansfieldLabourSigned
Stephen Kinnock08/12/2015AberavonLabourSigned
David Hanson08/12/2015DelynLabourSigned
Jim Cunningham08/12/2015Coventry SouthLabourSigned
Dennis Skinner08/12/2015BolsoverLabourSigned
Paul Flynn09/12/2015Newport WestLabourSigned
Rosie Cooper05/01/2016West LancashireLabourSigned
Roger Godsiff05/01/2016Birmingham, Hall GreenLabourSigned
Joan Ryan11/01/2016Signed
Yasmin Qureshi11/01/2016Bolton South EastLabourSigned
John Cryer13/01/2016Leyton and WansteadLabourSigned
David Crausby27/04/2016Bolton North EastLabourSigned

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