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While HM Revenue and Customs has been trying to convince freelancer groups and experts in the field that their intention is not to target the genuine businesses or self-employed, they have failed to calm the troubled waters in all quarters.
Freelancer trade body, the PCG, has now voiced it concern that the proposed changes to pre-existing agency legislation risk cutting off access to the freelance sector for agencies.
According to Chris Bryce, PCG’s Chief Executive, if the wording in the consultation document remains unchanged, this could result in agencies finding it impossible to do business with independent freelancers.
He said: “We fear that if these plans are introduced unchallenged it could be devastating for many in the freelance sector. In their current state, the proposed measures risk making it impossible for agencies to do business with independent professionals who provide their services on a freelance basis.
“HMRC did move to assure us prior to release of the consultation that the aim of the measures is to target schemes where vulnerable workers are moved to self-employment en-masse when they should be employed. However it appears that they have not considered the commercial ramifications of their proposal."
Burden
According to the PCG, although HMRC have stated that ‘the Agency Legislation will not generally apply to PSCs’ they have not considered that the burden the new legislation will put on agencies will make them less likely to facilitate work for freelancers.
He added: “HMRC must ensure the definition is watertight so as not to bring freelancers into scope accidentally. It is not helpful that HMRC refer to computer programmers in their consultation when, in fact, the real vulnerable workers are likely to be lower skilled and lower paid.
“It is difficult to comprehend a situation where policy makers would introduce a measure that makes accessing Britain’s most enterprising and entrepreneurial sector all but impossible. With these measures, they risk doing just that. They must recognise the changing face of the labour market and ensure all proposals encourage and encompass the flexibility required in a 21st century economy. Freelancers contribute hugely to that economy and encourage the creation of full-time jobs, these measures could damage both those vital functions.
“The last thing our economy needs at this moment is red tape which directly obstructs the ability of freelancers and their clients to work together.”
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Susie Hughes © Shout99 2012
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