A leading provider of contractor accounting and business administration services has reassured recruitment agencies and Umbrella Companies that there is plenty of time to offer compliant solutions to proposed legislation on overarching contracts and reimbursed expenses and leave the UK’s professional contracting sector undamaged.

Although the proposed legislative changes could have significant implications for contractors and Umbrella Company employees, Nova Contracting director Marcus Green said these changes would not come into force until April next year, allowing time to plan for and manage any new statutory requirements.

The deadline for feedback on the discussion document is 10th February, allowing industry representatives ample time to supply clear examples of the “unintended consequences and downright unfairness” that may arise if the government chooses to ban home-to-work subsistence allowances under intermediary arrangements, Mr Green said. The second option targeting people employed on overarching contracts, he added, would impact Umbrella Companies.

The government, he added, appeared genuine in its efforts to seek the views of the people and organisations that will be affected and has acknowledged that the temporary workforce “is vital to the UK’s dynamic labour market”.

Mr Green continued: “Any new contracting legislation must support the vital contribution they make to our economy and the level of services and deliveries we’ve all now come to expect.”

Citing the massive surges in consumer spending on Black Friday and Boxing Day (£810m and £748m respectively), Mr Green added: “Those sorts of sales spikes would not be possible without the use of temporary drivers, packers, administration and sales staff and we need to attract more good calibre people to meet continually growing demand.”

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