So we’ve seen the term ‘gig economy’ strewn around on the news, in papers and online but what is it? Well in simple terms it is end hirer’s engaging individuals on a casual basis and determining a self-employed status which can be argued is not genuine. Unless you’ve been residing in a cave for the last year you won’t be unfamiliar with cases such as Sports Direct, Uber, Deliveroo and Hermes to mention a few.
The government’s Autumn Statement this year alluded to how the ‘gig economy’ is starting to affect budget revenues, due to self-employment and causal work of this nature reducing the amount of tax paid. It is estimated that by 2020/21 it will cost the treasury around £3.5 billion according to the Office for Budget Responsibility.
As a result of a rise in the number of self-employed contractors within the UK, it is no surprise that companies who engage self-employed contractors may soon expect a visit from the newly formed HMRC ‘Employment Status and Intermediaries Team’. The team will launch investigations to ensure companies are providing it’s workers with the correct employment rights, status and benefits. For those companies found to have mis-classified individuals as self-employed, they are likely to be liable to pay all proper tax, NIC’s, interests and any penalties as a result.
Trying to fathom the bones of HMRC policy around self-employed subcontractors is tough and that’s where you can put faith in Cinch that we see to it! If you have any worry towards the nature in which your subcontractors are engaged then we are here to advise, just give us a call.
Cinch by name, Cinch by nature – we’re here to take the headache out of payroll. Our knowledge and expertise combined make umbrella services easier than ever. It’s not just umbrella either, we know the Construction Industry Scheme (CIS) inside out so we can advise you and your workers on the best options available.
The Cinch Group take our responsibility to both our clients and contractors seriously. Our aim is to promote and protect the interests of professional contractors and temporary workers by adhering as trade associate to the FCSA Charter.