HMRC must treat the self-employed as individuals and not ‘force’ them into being treated any differently warns Dover Green, an employment agency specialising in the supply of self-employed contractors globally.
According to recent labour market figures, 40 per cent of new jobs created since 2010 have been categorised as self-employed positions.
However, while self-employed workers have topped 4.5million in the UK, the number of people being investigated by HMRC for “falsely registering as self-employed for tax purposes” has also quadrupled in the past year.
Dover Green – a streamlined employment agency specialising in administration solutions for self-employed contractors - insists that HMRC must accept this is a growing section of the country’s workforce, and not ‘force’ the self-employed into being treated as everyday employees.
The agency believes there is now a consensus that all but the most obviously self-employed will not pass HMRC's challenging test.
But Dover Green says that workers in this category are typically better off than many of their employed counterparts, and must be encouraged in their unique enterprises as they are helping to enrich the UK’s diverse skills base.
Furthermore, this new influx of self-employed workers has meant that the UK’s unemployment figure has fallen by 191,000 to 2.33 million for November 2013 to January 2014, further boosting the economy.
Although self-employed workers are not automatically entitled to sick, holiday, maternity or paternity leave or redundancy pay, they are usually paid more than employed workers and have the same discrimination and health and safety rights as them.
They also enjoy a range of benefits that employed workers do not receive, such as added freedom over their tax affairs and the increased ability to claim expenses, reliefs and allowances for the current and previous four tax years.
For many though, a self-employed job is used to supplement their main income, with over 40 per cent of the self-employed jobs created being part-time.
Dover Green Director Robin Hagerman said: “We are now in a situation where the laudable act of self-employment could be discouraged through increased HMRC restrictions and red tape, meaning less time for individuals to spend on creating new business opportunities.
“This considerable section of the workforce has helped to kick start Britain’s economy in recent years, and without such enterprising individuals, current unemployment figures would be much higher.
“These diligent, hard-working people running the country’s smallest businesses represent a flourishing part of a fragile economy. They have to be encouraged, not scrutinised to the point that this fresh spring of expertise is supressed at source.
“They put a lot into this country. It is only fair that they are given something back and allowed to continue to be considered self-employed when it comes to such vital matters as earning an honest living.”
He added: “It’s important to emphasise that businesses opening up opportunities to self-employed workers are also able to take advantage of the flexible working arrangements that this hugely worthwhile option continues to offer.
“Certainly, a business that engages a self-employed individual can do so without the often cumbersome and time-consuming obligations of regular employment, making it possible to engage workers as and when it suits both parties.
“Through offering and taking on such positions, a business can have the flexibility to respond to supply and demand pressures, enabling it to make the best use of its resources at any given time.
“This facilitates efficient growth of the business – not to mention exciting new job opportunities for the UK’s self-employed workers too.”
