The government published its response to the ‘Taylor Review of Modern Working Practices’, which aims to ensure that the UK labour market can adapt effectively to modern ways of working, while ensuring workers’ rights.
Susan Ball, Head of Employers Advisory Services at national audit, tax, advisory and risk firm, Crowe UK commented:
"Matthew Taylor recommended that renewed effort should be made to align the employment status frameworks for the purposes of employment rights and tax to ensure that the differences between the two systems are reduced to an absolute minimum.
"The government agrees that this is the right approach and will bring forward detailed proposals on how the frameworks could be aligned. This will legislate to improve the clarity of the employment status tests, reflecting the reality of modern working relationships. Also improving the guidance and online tools available to help people understand their status will be of critical importance.
"This will help employers by providing clarity on employment status. If a statutory test comes in ahead of the off payroll in the private sector rules in April 2020, this will greatly help the private sector comply and should mean that HMRC’s ‘Check Employment Status for Tax’ (CEST) Tool, which has been subject of much debate, is able to provide employers and workers with a definitive answer where there is any uncertainty.