OR REQUEST A CALL BACK Menu LET’S TALK 0800 316 6030 Chat
Dan Blake
24th August, 2015

FCSA dismisses CAB claims on bogus self-employment

Fcsa logo

The Freelancer and Contractor Services Association (FCSA) has rejected a report from the Citizen's Advice Bureau (CAB) which claims around 460,000 people have bogus self-employed status nationwide.

The FCSA said the report is an over-simplification of the real situation, and that the report did not make clear that bogus self-employment is disproportionately found among lower-paid workers. The nationwide figure given by the CAB does not appear to factor in this disparity.

FCSA data indicates 48% of self-employed workers are higher-paid professionals, such as managers, directors and senior officials. The CAB report surveyed 500 of its clients who may or may not be representative of the workforce as a whole.

Julia Kermode, chief executive of the FCSA, commented: "Whilst it is positive that the Citizen's Advice Bureau is exposing some very poor practices, we are concerned that today's report may lead to pressure for a knee-jerk response to what is actually a very complex issue."

The CAB report claims that many people are told they are self-employed when government tests would indicate otherwise. Employment status can be a grey area, as HMRC and the DWP use different tests to determine status.

The CAB claims that bogus self-employment status costs the Exchequer £314m annually and that lower-paid workers potentially lose out on £1,288 annual holiday pay and pay £61 extra in National Insurance contributions. The CAB is calling for a review of the applicable rules to increase clarity.

Julia Kermode of the FCSA said: "We strongly oppose any bad practice and we will continue in our efforts to help rid the industry of any rogue firms."

Read more articles
APSCo survey shows recruiters are confident of growth What a snap election might mean for contractors A cautionary tale - what happened when we Googled "best umbrella companies"
0800 316 6030 LIVE CHAT CALL BACK EMAIL US