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.
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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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