9/11/16 – Organisations representing umbrella companies and the self-employed have condemned reported government plans that would see freelancers and contractors working through personal

service companies (PSCs) moved onto the payroll.

The Guardian, quoting a government source, reported at the weekend Chancellor George Osborne is planning the measure that would see freelancers and contractors forced on to the payroll if they work for a business for more than a month.

The report adds businesses, rather than the individual, would be responsible for overseeing the rules with agencies responsible if they provide people to businesses.

Attacking the proposal, trade association for professional employment services, FCSA chief executive Julia Kermode said in a statement the plan would have a “significant” impact on the UK economy, contractors and companies that hire them.

“There are some 4.6m self-employed workers in the UK who will have to go on the payroll of each of the clients they work for after a month if this legislation comes into force.

“That is a huge administrative burden for UK plc who will suddenly find themselves having to deal with a significant amount of workers on the payroll – and if they are on the payroll and being taxed as employees will they be entitled to all the statutory benefits that come with being an employee? It’s simply not workable.”

Kermode added, following talks she had had with politicians, there was no political backing for the chancellor’s plan.

Meanwhile, the Association of Independent Professionals and the Self-Employed (IPSE) chief executive Chris Bryce said in a statement he is seeking urgent clarification on whether the plans are under serious consideration and if they are, he urged a rethink.

Bryce added: “This measure was not contained within the government’s original consultation documents and has not been raised by the government with stakeholders in its regular IR35 Forum meetings.

“Springing such a measure on a sector which is already short on confidence could cause significant harm to the economy which relies on independent professionals for flexibility and innovation.”

An HM Revenues & Customs spokesperson told Recruiter the department was not commenting on the reports, as an unidentified source rather than an official government spokesperson had been quoted in media reports

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