Employment status is a public interest issue

Jun 05, 2018

That’s according to the NI Tax Committee in its response to the consultation Good Work: The Taylor Review of Modern Working Practices – Employment Status’. The Committee recommends that despite employment law being a devolved function, any changes made to employment status in the UK in future should be made to the UK as a whole.

The employment status rules in Northern Ireland should mirror those in the rest of the UK; they should be no more or less favourable as that would run the risk of unscrupulous employers taking advantage of any differences.

The submission recommends the avoidance of solutions which deprive businesses and workers of much needed flexibility and therefore is not supportive of any changes in the short to medium term until a full public debate has been held.

The Committee makes four key recommendations in its submission:-

  • If there continues to be perceived avoidance arrangements arising from the use of service companies, review enforcement activity and consider introducing a surcharge on undistributed income of the intermediary which is currently part of the Irish tax regime;
  • Proceed with the abolition of Class 2 NIC and Class 4 NIC reforms from 6 April 2019;
  • Do not codify existing case law at the present time; and
  • Delay any proposals on employment status until a wider public debate has been held.