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APSCo appears before House of Lords Select Committee

During the course of the inquiry it intends to consider the implications for tax, National Insurance and wider issues both from the point of view of the workers themselves – and their clients.

Samantha Hurley, APSCo’s head of external relations, was invited to answer questions on a number of related topics, including the effect of staffing and agency worker regulations on the use of PSCs, the structure of supply models, and the effectiveness of IR35 legislation.

Speaking after her session at the House of Lords, Ms Hurley said, “One of the key points I wanted to get across in my evidence was the very clear distinction between the highly paid, highly skilled contractors who use PSCs in the professional sector, and those potentially vulnerable workers in the lower-paid/skilled & lsquo;blue collar’ sectors. I was also asked about the effect of the Agency Workers Regulations, and why this has caused an increase in the use of PSCS – I explained that this was because highly skilled professional contractors,  who are in  business on their own account, neither want nor seek the employment-related protections afforded by such legislation.  I pointed out that this is clearly illustrated by the fact that 98.6% of professional contractors working through APSCo members surveyed this year opt out of the regulations.

“ I was also asked to give evidence on the guidance provided by HMRC on IR35. While we are pleased that HMRC  is reviewing its guidance, we do have very real concerns regarding the misuse of the Business Entity Tests, which are being utilised by some public sector departments to define an individual’s employment status for tax purposes.

“We were delighted to be invited to give evidence.  It’s important that the views of the professional recruitment sector are heard by this committee, so that our industry does not suffer further damage from the unintended consequences of well-intentioned proposals designed to protect the vulnerable.”


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