The Recruitment & Employment Confederation (REC) has been working with HM Treasury on ongoing taxation concerns for the UK recruitment industry.
Their latest appeal to the Treasury highlights the need for clarity in the way that taxation rules are applied to the recruitment sector – particularly with regards to travel dispensation schemes and to ensure that there is a level playing field for all members to operate in.
They are also continuing to engage with HMRC on improving IR35 rules for self-employed contractors. One major concern surrounds proposals for moving all ‘controlling persons’ onto the payroll which would undermine our economy’s valuable labour market flexibility.
The REC’s message to government is that to successfully use contractors there must be systems in place to manage contracts and staff, rather than a restrictive, one-size-fits-all regulation.