Self-employed welcome latest commitment to abolish NIC increases
Good Work plan promises holiday and sick pay to millions of vulnerable workers The government has responded to the Taylor review into modern employment practices by promising to improve working conditions for millions of UK workers. __________________________________________________________________________________ Commenting on the Good Work plan’s commitment to scrapping NIC increases, Julia Kermode, head of the Freelancer and Contractor Services Association (FCSA) trade association providing support to UK freelancers and contractors said: We are glad to see no [government] move here. however, the elephant in the room is still the fact that hirers do not pay employers NICs when they engage self-employed people, which can be a driver towards poor practice, particularly in sectors where margins and overheads are squeezed. it makes sense to use [this] opportunity to align employment and tax statuses, the current mismatch creates confusion and can drive behaviour such as engaging self-employed people in order to minimise employment NICs. Cherry went on to say that the government’s renewed focus on good quality? work, as set out in Good Work plan, is the correct move, particularly for self-employed people. we need to stamp out false self-employment, but what we definitely can’t have is the genuinely self-employed disadvantaged in the process, he added. with the unveiling of a raft of new rules, the government needs to remember that legislation is not always the answer. Incentives and nudges are often the best route to improving modern working practices.