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Tax avoidance: ASPCo briefs the Labour front bench

Tax avoidance: ASPCo briefs the Labour front bench

Today APSCo met with Catherine McKinnell MP, Shadow Exchequer Secretary and part of Labour’s Treasury team, to brief her on tax avoidance issues and the flexible labour market.  Controversy over tax avoidance has dogged the industry over the past year, as unscrupulous practices among some recruiters operating within the blue collar market have often meant that the recruitment sector as a whole has been brought into disrepute.

APSCo’s Head of External Affairs Sam Hurley said: “APSCo was grateful for the opportunity to brief the Labour front bench on tax avoidance and to explain the differences between those who may be forced into temporary work – and those professional contractors who are genuinely self-employed.  On average, these individuals pay around 10% less tax than an employee, but also have  the expense and risk of running their own businesses without many of the benefits afforded to permanent employees. As the parties work towards their manifestos for the 2015 elections, it’s more important than ever that we educate MPs about the particular nuances of the professional recruitment sector and the benefits of the flexible labour market. “

The Labour Party has played a leading role in exposing tax avoidance, particularly around the issue of inappropriate use of personal service companies and the abuse of interim arrangements.  While APSCo absolutely supports efforts to clamp down on tax avoidance, it is important that the legitimate tax advantages of contracting are maintained and that any measures introduced are targeted at the right areas.

 “We support legislation to protect the vulnerable and expose the unscrupulous”, added Hurley. “But APSCo has always been clear that vulnerability and unscrupulousness are not features of professional recruitment. Meetings like this help to ensure that APSCo members avoid being caught in the cross fire of well-intentioned measures aimed at other sections of the market.”

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