On 11 July 2017, the publication of “Good Work: the Taylor Review of Modern Working Practices” made a number of recommendations on the taxation of workers in the so-called “gig economy”.
Although tax changes were outside the formal scope of the Review, it nevertheless recommended (amongst other things):
• that the definition of employment status should be made consistent as between employment law and tax law
• that the disparity between rates of national insurance contributions (NICs) for the employed and self-employed should be addressed by increasing the rate of class 4 NICs for the self-employed
It is expected that consultations on this area may be launched later in the year. Whether the Government feels able to address the NICs disparity, in particular, is unclear in light of the attempt to do so earlier this year which resulted in a subsequent u-turn.
The Review can be viewed here.