Donna Sharp, Director in KPMG Employment Legal Services team in the UK, comments on today’s response from the Government to The Taylor Review of Modern Working Practices:
“The Taylor Review’s recommendation to address the disparity between the level of income tax and National Insurance Contributions (NIC) applied to employed and self-employed individuals is not to be taken forward. Given the distorting effect that this disparity can have on how business engages labour, we think the Government should more thoroughly engage in a wider dialogue on how the UK should be taxing labour in the twenty-first century.
“This said, the Government’s commitment to ensuring individuals and businesses are more easily able to understand when someone is an employee, worker, or self-employed is to be welcomed. However, it is not yet clear whether changes will be made as to how these working relationships will be established.
“The Government’s responses to the proposed consultation exercises, and how these might translate into changes to employment law (in particular, how employment status is determined) will be key in how modern working practices develop. We will review the Government’s full response to the Taylor Review, and the consultation documents, and publish our detailed comments in due course.
“Publication of the ‘Good Work Plan’ and the associated consultations are an important step in this journey, but there remains some way to go.”
For media enquiries, please contact:
Alastair Henry, Citypress
T : 0161 235 0320
E : firstname.lastname@example.org
KPMG Press Office
T : +44 (0) 207 694 8773
Follow us on twitter: @kpmguk
Notes to Editors:
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 14,500 partners and staff. The UK firm recorded a revenue of £2.2 billion in the year ended 30 September 2017. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 152 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
© 2020 KPMG LLP, a UK limited liability partnership, and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.