REC response to the story on the BBCs use of contractors
REC response to the story on the BBC’s use of contractors
Responding to criticisms of the use of contractors within the BBC, REC chief executive Kevin Green said: “The idea that using contract staff is a tax dodge is ridiculous, simplistic and wrong.
“This attitude toward the use of contractors in senior positions within an organisation is really disappointing and shows a worrying lack of understanding of business.
“These claims are not just damaging for recruiters and individual contractors, ultimately employers will lose out if they can no longer access the skills of specialist contractors and interims.
“The Treasury needs to issue clearer guidance on any assurances they require and enforce existing legislation so that employers using contractors can be confident that they are operating in a tax compliant way.
“The contribution of contractors and interim mangers is something that should be celebrated rather than damaged through knee jerk political reaction to headlines like those we have seen today.”
In response to the publication of the Public Accounts Committee’s report into & lsquo;Off-payroll arrangements in the public sector’, Stuart Davis Chairman of the Freelancer and Contractor Services Association has commented:
& lsquo;Once again it is disappointing to see a respected Committee like the PAC criticise the use of freelancers and contractors in public sector organisation such as local government, the NHS and the BBC. As we have made clear many times before, there is nothing wrong or inappropriate for any organisation, including public sector bodies to engage contractors at any level, if done properly, for the right reasons and where those concerned pay appropriate taxes.
& lsquo;We would like to remind the Committee 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 organisations and contractors alike.
We do however welcome and entirely agree with the Committee’s concern that HM Revenue & Customs is not properly enforcing the tax rules such as the current IR35 legislation. We believe that the right legislation is in place but that there is a failure to enforce it and we would support the Committee’s call for a strengthening of its enforcement.'