The government is currently reviewing self-employment models in the industry. It wishes to tackle what it deems to be 'false self-employment'. Legislation has been drafted and government is consulting with all relevant parties. The consultation period is due to end on 4th February 2014 and thereafter, the Government will announce whether or not it will introduce new legislation.
Does it affect me?
Umbrella: If you are employed by our umbrella company, this legislation will not affect you. You are not self-employed but an employed worker.
PSC: Although you have not been specifically excluded from the legislation, it is unlikely to affect you and HMRC has confirmed this. You must however continue to consider IR35 on your assignments; if you need IR35 advice, we can help.
CIS: If you determine how to carry out your work, you may be classed as genuinely self-employed and this legislation will not affect you.
If your client controls, directs or supervises your work, then you may be caught by the legislation. In that case, it will be more appropriate for you to consider our umbrella service. If you need advice, we can help.
What should you do next?
At the moment nothing since this is only a consultation exercise at present. We will let you know if there are any further announcements from government but if you have any questions or concerns in the meantime, please don't hesitate to get in touch with us. PayStream has a strong legal and compliance team which is committed to working compliantly and ethically.