FCSA responds to Treasury crackdown on off-payroll salaries
In response to the news today that HM Treasury has published both its review into the tax affairs of civil servants and the consultation on the Budget proposal that all & lsquo;controlling persons’ must by law be on the payroll of the engaging organisation, Stuart Davis, Chairman of the FCSA says:
“It is one thing for the Government to choose to shut the door on senior civil servants working as contractors, but quite another to suggest that contractors engaged in senior positions in private companies and organizations should be shut out too.
“As we have made clear many times before, there is nothing wrong or inappropriate for any organisation, including the Government to engage contractors at any level, if done properly, for the right reasons and where those concerned pay appropriate taxes. We would like to remind the Government and those who are criticising these arrangements, that freelance contracting work is undertaken by thousands of workers up and down the UK and is a legitimate and valuable way of working that benefits organizations and contractors alike.
“For a government that is attempting to cut red tape and promote a strong and flexible economy, attempting to constrict companies and organsations in this way smacks of an extraordinary over-reaction to a barely recognisable problem. As the Chief Secretary said in his statement, IR35 exists to ensure that tax avoidance is not taking place and it is a gross insult to freelancers and contractors to suggest that just because they are not full time employees they are somehow abrogating their leadership responsibilities.”