An umbrella company trade body has decided to close its doors to support a key competitor.

After seven years, the Association of Employment Management Companies (AEMC) will shut up shop and throw its weight behind the employment intermediaries’ new “driving force”, PRISM.

AEMC Director and Crystal Umbrella CEO said AEMC had been set up with the aim of lobbying the government and Her Majesty’s Revenue and Customs (HMRC) in the interests of its members’, but that the time was now right to entrust this role to PRISM, which “has been doing a fantastic job” in giving the industry a powerful voice in Westminster.

Mr Howell added: “It is important AEMC does not distract from the important work that PRISM is doing. PRISM is expanding and commands the respect of officials as well as its members under the careful stewardship of [CEO] Crawford Temple. We expect PRISM to continue to grow. It has already proved itself to be a driving force in the fight to get a fair deal for the intermediaries sector on travel and subsistence changes with its Yes2T&S campaign and lobbying activity.”

A number of AEMC members, including Crystal Umbrella, are already members of PRISM, which was set up in May last year.

PRISM CEO Crawford Temple welcomed AEMC’s decision, which he said will focus attention on PRISM and help to drive forward its advocacy for its members, and thanked the organisation for its support.

Attacking the government’s plans to take “thousands of pounds from contractors” under new travel and subsistence rules, Temple pledged to continue fighting the proposals, adding: “We are certainly stronger together.”

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