New HMRC unit to tackle exploitation of self-employed
The financial secretary to the Treasury, Jane Ellison, has announced that HMRC is launching a specialist unit to investigate companies that avoid giving workers employment protections by using agency staff or calling them self-employed. The move comes as HMRC reveals compliance teams are examining around 100 reports from staff at delivery company Hermes regarding claims that they are being paid below minimum wage by the courier service, once petrol costs have been accounted for. There have also been allegations that workers receive no holidays or sick pay amid confusion over whether they should be classed as self-employed. HMRC executive chair Edward Troup said HMRC would make sure Hermes pays the appropriate tax, NI contributions, interest and penalties if individuals are found to have been misclassified. Source: The Guardian (21/10/2016)
This is an area that we have seen a lot of activity in. It is a complex area and if you want us to review the tax status of any of your workers, just let us know.