A new HM Revenue & Customs (HMRC) unit has been set up to tackle exploitation of the self-employed. 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.
Edward Troup, executive chairman of HMRC, said: "Individuals cannot be opted out of employment rights and protections simply by calling them 'self employed'. We are committed to tackling false self-employment.
“Employment status in the UK is determined by the reality of the working relationship, not simply by the terms of any contract,” he added. “Individuals cannot be opted out of employment rights and protections simply by an engager calling them ‘self-employed’.”
If your business deals with a large number of agency or self-employed staff, our experts are on hand to review your individual situation and advise you on the potential risks of not putting these individuals on the payroll if they are ultimately thought to be employees.