The Government is consulting on how it will tackle non-compliance with the off-payroll working rules for workers in the private sector. It believes that current legislation is not working effectively.
The Government estimates that a third of people working through an intermediary company (agency, personal service company (PSC), limited or umbrella company) are working like employees – and should therefore pay broadly the same income tax and National Insurance Contributions (NICs) as if they were employed directly.
We are seeing an increasing uptake of HGV drivers being led into complex self-employment arrangements. Employment status is not a choice, it is determined by the facts of an engagement and the working practices. Those who are genuinely self-employed are, and will continue to be, treated as self-employed for tax purposes, those who are not could face huge payments in back tax and interest.
The RHA will be responding and will be inviting members to provide feedback prior to the consultation deadline of 10 August 2018. Members can respond directly to the consultation (here) or await the RHA feedback form which will be available in a week or so.