While there are many workers who are happy contracting through an umbrella company, new research shows there are some who have felt forced into it.
According to the IPSE survey, a number of umbrella company contractors believe that the IR35 reforms have had a massive part to play in this – for example, 69% say that their clients have insisted that they work via an umbrella company ever since the changes began.
Despite this, as many as 57% of those in this position believe that their role is outside of the IR35 legislation and the supply chain won’t allow them to take the risk of operating through their own limited company.
Andy Chamberlain, Director of Policy at IPSE, said, “The fundamental problem here is that people are being forced into pseudo- employment relationships they do not want. Since the IR35 changes came in a year ago, thousands who proudly consider themselves self-employed are being pushed into umbrella companies under disadvantageous conditions, often without even a choice over which umbrella company they use.
“Today’s report was shared with the government following their recent call for evidence and we hope that they listen to us and the many umbrella company workers that have failed to see the benefits of working via an umbrella company. In particular, we hope that they put forward recommendations that stop freelancers from being forced into working for umbrella companies that limit their independence and give them no real benefits.”
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