Optionis comments on the OTS's employment status report reaction
Derek Kelly, group managing director at Optionis, said, “This report contains some interesting ideas, but we shouldn’t overlook the support systems that currently exist. New thinking is great, but so are tried and tested solutions.
“For example professional, compliant umbrella companies such as Parasol already employ contractors and other contingent workers. In doing so, they provide a valuable service to workers and staffing firms, and also effectively act as an outpost of HMRC when it comes to tax collection.”
Meanwhile, Kelly is “not hugely enthusiastic” about the idea of a creating a & lsquo;Freelancer Limited Company’ structure within the tax system – the & lsquo;third way’-style concept discussed in, but not endorsed by, the OTS report.
He said, “For me, such a change could create more problems than it solves – as well as reinforcing the notion that personal service companies (PSCs) are somehow different to other businesses.”