http://www.cipd.co.uk/pm/peoplemana...-off-payroll-workers-expected-this-month.aspx
To be fair contractors do take the mickey - I know plenty of people working in IT who are essentially short term employees dodging tax. The daily rate in itself is sufficient to compensate for the additional 'risk' not being in a perm role presents - the tax/NI dodging part is a fair target IMO.
The government’s expected clampdown on paying workers via an umbrella company or Personal Service Company (PSC) to pay a lower rate of tax will place a “huge administrative burden” on employers, experts have warned.
Julia Kermode, chief executive of the Freelancer and Contractor Services Association (FCSA), said that any tightening of the rules could force employers to put these individuals onto their payroll as employees.
Her warning came amid reports that chancellor George Osborne will make an announcement in his autumn statement later this month on the use of contractors who work for one company but are set up to avoid paying national insurance contributions.
Under the existing rules, employers also benefit because they end up with smaller national insurance and pensions bills.
To be fair contractors do take the mickey - I know plenty of people working in IT who are essentially short term employees dodging tax. The daily rate in itself is sufficient to compensate for the additional 'risk' not being in a perm role presents - the tax/NI dodging part is a fair target IMO.
"I think for a long time the writing has been on the wall that either the individual needs to be an employee either of the agency or the business that they are working for, rather than going through any other vehicle. If they are working for you solely for any length of time they will probably have to be treated as an employee. Auto enrolment, holiday entitlement and sick leave will all be part of the mix and things like the national minimum wage could all have an impact."