Taylor Review calls for new ‘dependent contractor’ employment status
A new employment status category of ‘dependent contractor’ is the centrepiece of the long-awaited Taylor Review, a nine-month probe into modern working practices by Matthew Taylor, Chief Executive of the RSA.
The report, published in July 2017, suggests that a national strategy is needed to help provide security in such areas as wages, quality of employment, education and training, working conditions, work life balance and the ability to progress at work.
One of the areas of focus relates to the ‘gig’ economy, with the report recommending the creation of a new category of worker, known as a ‘dependent contractor’, to provide additional rights and benefits for those who are currently classed as self-employed, but who work for businesses which have a ‘controlling and supervisory’ relationship with their workers.
The additional benefits would include sick pay, holiday entitlement and the minimum wage, and the new employment status would also oblige these businesses to pay national insurance contributions for these workers.
Business groups have given mixed reactions to the report’s findings, with many welcoming the focus on labour market flexibility, but also warning that some areas, including the plans to rewrite employment status tests, are a cause for concern.
Lee Muter, Employment Taxes and Payroll partner at UNW said: “It is clear that the subject of employment status both for tax and employment law purposes remains a key and complex issue for employers and contractors alike. While the growth in self-employed entrepreneurs has been a success story since the last recession, there are still some obvious concerns about the rights and tax liabilities of these key workers which have often been legislated for piecemeal and without reference to the impacts on employers and contractors. It is hoped that the Taylor Review results in a more holistic and clear approach towards this vital sector of the economy so that entrepreneurship is not stifled by the costs and requirements of any new legislation.”
With less than a year to go until the introduction of HMRC’s Making Tax Digital for VAT scheme, businesses must
The dramatic increase in fraud shows no signs of slowing down. Although the true annual cost of fraud to the
HM Revenue and Customs (HMRC) has published its Employer Bulletin for June 2018 which is available to view at the
Founded way back in 1865 by John William Cameron in Hartlepool, County Durham, Camerons Brewery is the largest independent brewer
New rules surrounding salary sacrifice, termination payments and benefits in kind are being felt by businesses across the country, with