The Low Incomes Tax Reform Group (LITRG) has highlighted the huge amount of work to be done in order to implement the recommendations and deliver the plan set out by the Government in its response to the Matthew Taylor review ‘Good Work’. This will require Government departments to work together and LITRG has called for a person or body to be appointed to co-ordinate and oversee the implementation of the plan.
LITRG Chair Anne Fairpo said:
“The 'Good Work' plan requires a lot of elements to come together. Government will obviously be delegating to various departments to achieve the objectives here, including, BEIS, HMRC, DWP, Courts Service, GDS, the list goes on. However, in our experience, the more Government departments are involved, the greater the effort required to put together a coherent policy or plan and ensure delivery is effective.
“There must be absolute alignment between the various departments in their approaches to taking this forward. Ideally, we would like to see the appointment of someone to oversee the implementation of the plan, keep the various departments focused and to produce an annual report on how things are progressing - so that the various action points don’t get lost.”
The Government has acted on all but one of Matthew Taylor’s 53 recommendations. It rejected his proposals to reduce the difference between the National Insurance contributions (NICs) of employees and the self-employed following Budget 2016 and confirmed today that there are no plans to revisit the issue.
Anne Fairpo further comments:
“Taking action against engagers of low-paid workers who use exploitative practises and clarifying what workers should be entitled to expect is good; better still would be to remove the incentives for such exploitation.
“For that reason, it is unfortunate that the Government has decided that changes to the tax and NICs regime is out of scope, whether for employees or the self-employed, when it often seems to be the desire to save tax, and employers’ NICs, that leads to false categorisation of workers and much of the labour market abuses that the Taylor Review attempted to deal with.
“The Government has, however, accepted recommendations introducing a right to request a more stable contract for all workers including those on zero hours and help for workers to enforce sick and holiday rights, and asking the Low Pay Commission to consider introducing a higher rate of the national minimum wage for workers on zero-hour contracts. In terms of the key issue - employment status, there are no firm proposals, but a consultation has been launched. “
Notes for editors
2. Low Incomes Tax Reform Group
The LITRG is an initiative of the Chartered Institute of Taxation (CIOT) to give a voice to the unrepresented. Since 1998 LITRG has been working to improve the policy and processes of the tax, tax credits and associated welfare systems for the benefit of those on low incomes.
The CIOT is the leading professional body in the United Kingdom concerned solely with taxation. The CIOT is an educational charity, promoting education and study of the administration and practice of taxation. One of our key aims is to work for a better, more efficient, tax system for all affected by it – taxpayers, their advisers and the authorities. The CIOT’s work covers all aspects of taxation, including direct and indirect taxes and duties. The CIOT’s 18,000 members have the practising title of ‘Chartered Tax Adviser’ and the designatory letters ‘CTA’, to represent the leading tax qualification.
Contact: Hamant Verma, External Relations Officer, 0207 340 2702 HVerma@ciot.org.uk (Out of hours contact: George Crozier, 07740 477 374)More Articles by Chartered Institute of Taxation (CIOT) ...