According to the Time, the chancellor is contemplating a £1bn raid on contractors aimed at a crackdown on  “disguised employment” in the private sector, which could force businesses to add self-employed staff to their payroll, pushing up everyone's tax bill.

This move is likely to be announced in next month’s budget to level the playing field between salaried staff and contractors. It has been suggested that this could provide a boost to Hammond, who is scrambling to fund public sector pay rises and to increase spending on the NHS and social care.

The Treasury is targeting IT contractors, consultants and other freelancers who are paid through “personal service companies” (PSC's or Single Person Ltd Companies). Currently, it is up to the workers to pay the correct personal tax and national insurance contributions. HM Revenue & Customs believes that most of them do not comply in full.

To find out more, please read the full article at https://www.thetimes.co.uk/edition/b...cers-9bm6lsjs6

With the Autumn Budget having been announced by Chancellor of the Exchequer, Philip Hammond, PRISM has called out for the government to stop and think about extending IR35 rules.

With the Autumn Budget set to take place 22nd November, the non-profit making trade body for umbrella companies, PRISM has urged the government to think over any plans to extend IR35 rules to the private sector – a rumour that has been going around for a while now.

Crawford Temple, CEO of PRISM, explained, “The IR35 legislation, as it stands, contains incentives and protections for both recruiters and workers to seek out providers who offer high-return but non-compliant solutions. Since its introduction, we have seen an increase in non-compliant offerings, with many able to fold when approached by HMRC.

“The regulation in its current form means it is highly unlikely that HMRC will be able to collect any taxes due from the non-compliant providers, and therefore, the anticipated tax gains will be significantly reduced.

Temple added, “Extending these rules to the private sector will exacerbate the problem and will not deliver the expected HMRC returns. The long-term answer is a structural reform of the tax system rather than a sticking plaster approach of tweaking rules.”

TfL have made, for many people, a surprising decision with regards to not issuing Uber with a new private hire licence in the capital, saying the firm is not ‘fit and proper to hold a London private hire operator licence.’

The Association of Independent Professionals and the Self-Employed (IPSE) have expressed its concerns about the impact that this news will have on the thousands of self-employed drivers who find work through the app.

IPSE CEO, Chris Bryce, commented, “TfL’s decision not to renew Uber’s licence is perverse and will leave tens of thousands of hardworking, honest and dedicated self-employed drivers out of work. It is a bad move for London’s travellers and a disaster for people using the app to make a living. The vast majority of drivers who use the Uber platform are self-employed individuals who will now struggle to put food on the family table. Many of the drivers are tied in to lease deals on their cars and they will be incurring costs without a way to earn a living.”

He added, “This seems like a politically-motivated decision which totally ignores the many thousands of men and women who earn a living through the Uber app, and runs counter to what should be at the heart of Sadiq Khan’s political agenda: ensuring the wellbeing of ordinary hardworking people.

“As a country, we should be embracing the innovation of the app-based economy. Denying it would be a Luddite move that suggests the UK is not open for business.

“We call on Sadiq Khan to think again, revoke his support for this decision and intervene to ensure drivers will be able to continue working. The self-employed simply want to earn a living without having to rely on the state.”

Uber have said that they will be appealing against the decision.