Many contractors choose to use an Umbrella company to smooth the path of their working lives. However, within that industry there have been various challenges over recent years that are continuing to force change in working practises. AWR and the introduction of match pay & Swedish derogation, Pension Auto enrolment & RTI are all examples of governmental changes which directly affect the Umbrella Industry and there are more in the pipeline. With the new finance bill aimed at removing the tax benefit for travel expenses if such expenses are sacrificed against other taxed income, the picture is becoming increasingly cloudy for umbrella companies and contractors alike. The ongoing OTS consultation around business expenses for intermediaries and the forthcoming consultation on “direction, supervision & control” are two examples of how legislation is being prepared that will impact heavily on the way many self employed people organise their tax affairs. Agencies, unsure of how umbrella might be working in the future, may take the easy option of sending all workers down the limited company route. HMRC could also push the burden onto the agencies with the enforcement of ‘direction, supervision and control’ in the same way they have already done with the self-employed through the “Onshore legislation”. Of course there is also the possibility that direction, supervision and control will ultimately replace IR35 altogether, but only time will tell. Taken all together, this is why Crystal Umbrella are taking positive steps to combat the uncertainties with the new “update service” aimed at keeping workers and agencies up to date on what is happening as it happens.