Industry body teams up to aid government consulation

The Service Providers Association (SPA), an independent organisation that campaigns on behalf of contractors, will take a central role in working with Government during the consultation period on travel expenses for contractors working under overarching contracts.

The consultation was announced by the Government on Monday, 21st July, following the publication of the consultation paper entitled Tax Relief for Travel Expenses: Temporary Workers and Overarching Contracts.

Since the introduction of the Managed Service Company (MSC) legislation in April 2007, the number of umbrella companies has grown considerably. However, this has inevitably led to some companies operating in a non-compliant manner.

The new consultation paper indicates that the Government is determined to take action and stamp out such practices. SPA welcomes any moves to introduce rigorous and effective control of the umbrella market to ensure that only legitimate and fully compliant organisations can offer their services. This is in the best interests of both the contractor and their support companies.

Matthew Brown, acting-chair of SPA said: SPA intends to be a key player in the consultation process and will vigorously campaign on behalf of all contractors. Whilst we support the Government's clamp down on non-compliant practices, we believe that there are contractors working in a completely compliant fashion that are legitimately entitled to claim travelling and subsistence expenses in the performance of their duties. Any legislation introduced at the end of the consultation period needs to take this into consideration.

We are also concerned that the implementation of any new legislation in the temporary labour market may have far-reaching and unintended consequences for the industry and economy as a whole. We are committed to working closely with Government to help ensure this does not happen.

Comprising Brookson, Giant, JSA and PayStream, SPA has been formed to create an independent industry body which will act as the voice of quality service providers to the flexible labour market. It will work in conjunction with Government and other leading industry bodies to establish and maintain high working standards and ensure that the views of contractors are heard when legislation governing the industry is being proposed. To date, SPA has already made representation to the Treasury and HMRC over the use of umbrella companies.

For the time being, SPA will focus solely on the consultation process, adds Matthew. Once resolved, we intend to welcome all likeminded organisations who are able to demonstrate a commitment to compliance and ethical trading standards to join us.