Newly proposed reforms to tax the self-employed – known as Off-Payroll Working - introduces rules that enable firms to classify workers as ‘employed for tax purposes’, without providing them with any employment rights. This is wholly unacceptable.
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New measures in the Off-Payroll Working consultation effectively introduce a new 15% tax for self-employed workers, while enabling firms to circumvent their obligation to give employment rights to workers. This opposes the intentions of the Government’s ‘Good Work Plan’, designed to prevent unscrupulous firms forcing vulnerable workers into precarious work.
Parliament must ensure self-employed workers cannot be classed as ‘employed for tax purposes’ without receiving full employment rights.