Taylor review 'should recommend a tax probe'

The creative industry boss probing modern work practices should recommend a rethink of the relationship between tax and the growth in atypical work, such as gigging, a charity says.

Without the recommendation from the boss -- Matthew Taylor, the government may struggle to understand the changing nature of work or make changes to work practices, fears LITRG.

This is because the review is not permitted to focus on taxation, even though tax has an “intertwined relationship” with what Mr Taylor is meant to focus on -- work practices.

The LITRG (Low Incomes Tax Reform Group) added: “Statutory payments such as sick pay or maternity pay are often thought of as employment law ‘rights’ but are actually dependent on whether there is a ‘secondary contributor.’

“In cases where a worker is paid and taxed as self-employed, as those who work in the ‘gig economy’ often are (whether or not they are a ‘worker’ for employment law purposes), there will not be a secondary contributor – and therefore no sick pay for them.”

The group thinks ministers must not regard the review as a “comprehensive” examination of employment practices, including gig economy working or gigging, solely because its terms of reference exclude tax.

“You cannot understand one without the other,” scolded LITRG chair Anne Fairpro. “We think that a comprehensive review of tax and related issues and non-standard work should be carried out as a matter of urgency and hope that such a recommendation is made by Matthew Taylor and his panel.”


May 24, 2017
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