Petition · past parliament
Ban the use of umbrella companies for the subcontractors working outside of IR35
Rejected
11 signatures
What the petition asks
Umbrella companies must be banned as the care for workers is being further broken down amongst parties within the supply chain. This could help to ensure that employers continue to assume full responsibility for workers. This could also help to ensure that pay rates are inclusive of all deductions.
More details
IR35 has pushed contractors/agencies towards the reliance on Umbrella companies to take on employer liability, and this can lead to the avoidance of IR35 scrutiny. As a result, this incurs additional deductions on workers rates such as Employers NI, Apprenticeship Levy (which isn't practical for the circumstances) as well as Payroll margin (which Umbrella companies claim to make a profit). This can reduce workers’ pay drastically as well as increase the volatility of the industry.
IR35 has pushed contractors/agencies towards the reliance on Umbrella companies to take on employer liability, and this can lead to the avoidance of IR35 scrutiny. As a result, this incurs additional deductions on workers rates such as Employers NI, Apprenticeship Levy (which isn't practical for the circumstances) as well as Payroll margin (which Umbrella companies claim to make a profit). This can reduce workers’ pay drastically as well as increase the volatility of the industry.
Why it was rejected
There was already a petition about this issue. Duplicates are rejected so signatures collect in one place.
You may wish to sign this petition which calls for a similar action: Ban the use of umbrella companies
Timeline
| 11 Jul 2023 | Petition opened for signatures |
| 13 Jul 2023 | Rejected by the Petitions Committee |
Key facts
Signatures
11
Status
Rejected
Rejected
13 Jul 2023
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Source: the official petition page. Last checked 15 Jul 2026.