The Association of Professional Staffing Companies (APSCo) has welcomed the announcement that the Government will consult on how to best tackle non-compliance in the private sector.
This follows months of lobbying on behalf of members and the publication of research by APSCo which found that the public sector is suffering the consequences of the new rules, with 70% of recruiters finding contract placements in the sector have dropped since April 2017 and 45% reporting increasing charge rates for contractors.
Samantha Hurley, Director of Operations at APSCo, said: “On behalf of our members, we are incredibly relieved that the Government has stepped back from the brink of introducing any rushed or hasty extension of the off payroll rules into the private sector.”
“APSCo has called for a review of the impact of the public sector off payroll rules, and is very pleased that the Government has decided to consult more on this issue before implementing new legislation in the private sector. Extension of off payroll into the private sector remains a possibility and reform of some kind seems certain as the government estimates they could lose £1.2bn per year by 2022/23 if they do nothing. However, they have acknowledged that it is right to take account of the needs of businesses and individuals who would implement any change.
“The Government has promised that it will carefully consult on how to tackle non-compliance in the private sector. We hope that this will be an opportunity for a proper review of the public sector changes, and to provide a workable solution to improve compliance in those sectors where there is false self-employment.
On the Chancellor’s plans to publish a discussion paper as part of the response to Matthew Taylor’s review of employment practices in the modern economy, Samantha Hurley added: “We are also very pleased that the Government has announced a discussion paper as part of the response to Matthew Taylor’s review of employment practices in the modern economy, exploring the case and options for longer-term reform to make the employment status tests for both employment rights and tax clearer.
“APSCo gave evidence to the Review and has been liaising with the Government following its publication, and we welcome their desire to ensure that any potential changes are considered carefully.”