Weds 26 Nov 2014 | By Sarah MarquetHM Revenue & Customs representative Adrian Dixon faced a room of recruitment professionals yesterday [25 November] to answer questions about controversial changes to tax legislation at Global Recruiter’s Recruitment Live exhibition in London. 

As Recruiter has previously reported, changes to the legislation that puts the onus on the intermediary in a labour supply chain to ensure all correct information is filed, and taxes and national insurances paid, are proving to be worrisome for the industry.

Speaking at an Association of Professional Staffing Companies (APSCo) fringe event, Dixon explained the changes that he said were initiated by increasing government concern at the number of people claiming to be self-employed but who were actually employed by agencies.

He said it was estimated that there were about 250,000 people in false self-employment, 200,000 of which were working in the construction industry. Hundreds of construction workers are expected to publically protest the changes today. 

Those attending the session raised questions about the personal nature of information the HMRC will require agencies to ask of their workers. That includes things like date of birth and gender.

Some said asking employees to provide that information would leave the business vulnerable to claims of discrimination on the basis of age or gender, for example. 

Others were concerned it could see them lose business because people might be unwilling to supply the information.

Personal tax directorate policy team leader Dixon’s response was to not hire people unless they were willing to supply the information.

He said those people would soon learn that if they wanted to work, they would have to supply the information. He said HMRC needed that information to ensure all companies were above board and suggested telling the workers it was a government requirement.

“We have been assured by our risk people that this is the minimum data set we can get away with in order to manage the risk. Most intermediaries will be compliant however, there are a number that won’t be and we have to work out who they are in order to enforce legislation and ensure a level playing field.”

He said he could not explain the risk profiling, as that would “give away secrets”.

APSCo head of external relations Samantha Hurley, who introduced Dixon, said consultation on the amendments was due to close yesterday but she had been “reliably informed” by HMRC that submissions could be made until the end of the week. 

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