BASW calls on FCA to investigate umbrella companies

BASW is calling on the Financial Conduct Authority (FCA) to investigate the umbrella service company industry as too many self-employed workers – including social workers – have been affected by rogue employment intermediary arrangements. 

Many independent members have experienced a significant drop in net pay since the most recent IR35 reform with some feeling forced to use the services of specific umbrella companies, offering too good to be true tax breaks and loan scheme arrangements.

Moreover, an increasing number of social workers are finding that where appropriate amounts of tax have been deducted from their pay, these funds have not been submitted to HMRC and still sit with umbrella companies.

Furthermore, APSCo, a trade association for recruiting firms, recently admitted that referral payments to consultants from umbrella companies exist. BASW feels these ‘backhanders’ fuel an unethical system that needs greater oversight from government.

Therefore, we will be contacting The Financial Conduct Authority (FCA) to work with them to root out alleged fraudulent operatives in the umbrella company sector, with a goal of toughing regulation.

BASW have also approached associations for dentists, doctors, opticians and others with large self-employed sectors to explore a collaborative effort with the FCA.

The call follows a string of actions from BASW designed to help social workers working through an umbrella service company, the latest being a special event hosted in central London on 9th October.

This free to attend evening forum will be an opportunity for BASW members currently subject to HMRC Tax Avoidance Scheme investigations to access useful advice and information from industry experts.

The meeting will be strictly confidential allowing attendees to speak candidly of their experiences and to hear from colleagues in a similar situation.