HMRC’s plans for consulting contractors, in the public sector, on being taxed and put on the payroll as employees has been challenged by a research reported by the Public Accounts Committee (PAC).
Research performed by governmental departments showed that HMRC received satisfactory results from 2,248 respondents and workers (out of 2,505) on temporary staff’s tax affairs. Specifically, from a tax perspective, this implies that 90% of temporary workers are compliant and contradicts HMRC’s claim that a mere 10% of contractors who should apply the IR35 rules actually do.
The Freelancer & Contractor Services Association (FCSA) does not understand why HMRC wants to penalise the temporary workforce since high levels of compliance are revealed and the Government relies on it to
fill in skills gaps. Putting temps on the payroll will inevitably increase costs, regulatory & administrative burdens plus the public sector workers will be treated differently from other freelancers.
With Centralus, that’s definitely not the case. Our objective is to offer the best payroll solution through a flexible approach, competitive rates and professional advice to suit your individual needs. So, call us now and find out how we can help you.
