Leeds based contracting specialist Nova Contracting is calling for clarity and support for the vital temporary workforce sector following current consultation on employment business models.
The 12-week consultation period, which closes in September, will result in new legislation to be announced in the Autumn Statement and put into practice through next year’s Finance Bill.
Nova Contracting director Marcus Green said: “It is very much business as usual at the moment and any new rules would come into effect in April 2016, so we have plenty of time to develop employment solutions which are fully compliant and meet all HMRC requirements.
“What was disappointing, however, is that the ‘consultation’ is very much about how proposed changes would be implemented, rather than about the substance of the changes themselves.
“Home-to-work travel and subsistence allowance will be scrapped for umbrella and personal service company models alike, which will have a major impact on many contractors, who are still feeling a wages squeeze, despite emerging growth in the economy.
“Many drivers undertaking contracts for national logistics companies and home delivery groups will travel some 30 to 40 miles to their various depots – they will be seriously disadvantaged under the new rules, just at a time when temporary drivers are at a premium to meet the demands of our increasingly online shopping habits.
“Coupled with the summer Budget announcement that PSCs where the director is the sole employee will lose their Employment Allowance from next April, the contractor community would welcome some good news for a change.
“With more than 4.5 million people now self-employed, we need clarity and support for them and the vital contribution they make to the UK economy.
“We will be working with our trade association, the FCSA, to ensure the voice of responsible, compliant employment intermediaries is heard.
“We will also be monitoring the debate and the Government’s Autumn Statement, to ensure our business models remain compliant, competitive and attractive to the dynamic temporary contractor and freelancer market.”