Further to the Taylor review, the Government has confirmed that the included recommendations will be implemented. The Work and Pensions Committee have published draft legislation that outlines a number of recommendations with the most notable (and possibly tricky!) point pertaining to making ‘worker’ status the de facto categorisation for ALL self-employed relationships.
Here’s the segment from the draft that looks to be most controversial”
Worker by default
“Relying on individual tribunals as a corrective to companies’ systematic use of questionable self-employment models places an unacceptable burden on workers to address poor practice, while the companies themselves operate with relative impunity. We recommend the Government legislate to implement a worker by default model, as set out in Part 2 of our draft Bill. This would apply to companies who have a self-employed workforce above a certain size defined in secondary legislation.”
Typically bamboozling – so what would this mean to you as a contractor who engages sub-contractors?
Well, the Marden & Co interpretation is that if the legislation is introduced then any sub-contractors that you frequently engage for work shall be deemed workers, and therefore entitled to certain Employment Rights.
You can discover more of the salient points from the review here:
With a wealth of experience in understanding, processing and implementing new regulation and legislation Marden & Co are optimally positioned to help you remain competitive and compliant. We manage CIS payroll and sub-contractors to ensure you remain protected from HMRC.
We focus on the things that count to give you complete peace of mind.
If you are looking for comprehensive management of your affairs with a partner that will keep you ahead of the game, then get in touch with Marden & Co today for a free, no-obligation consultation..,. and if you do decide to make a change for the better with our free switching service you’ll find our rates are competitive and our quality of service is even better.
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