Quote:
Originally Posted by diebitter
Google IR35 and HGV drivers. You'll see government rules have been a significant cause in adding to the shortage by forcing them to pay same tax as employees whilst getting no employee benefits like annual leave and sick pay, making them lose something like 20%+ of their take-home pay. Gov have been directly responsible for a significant part of it, as the change has made people prefer different jobs or early retirement.
They broke it, they should fix it.
You seem to be assuming that all HGV drivers are employed via Agencies. They aren’t.
I am fully aware of IR35 and the way it was used to justify paying drivers lower wages. It was always a stretch to suggest that HGV drivers qualified under IR35 and the ways in which that was promoted and used over the years saw many changes. None of them particularly convincing against the fundamental requirements.
If you spoke to the drivers in the age range that appears to have abandoned the job you’d learn that they didn’t want to be using tax dodges to get paid a decent wage. They felt coerced into doing so, or that they had been misled into doing so. Some of the ‘umbrella/composite’ companies would have agencies sign up drivers by using phrases like ‘it’s our payroll company’ or similar. Normalising a deceit that was far closer to tax evasion than avoidance.
The government didn’t break it, they didn’t even have to change a law. They just applied the law as it had always stood.
Btw, the Agency Workers Directive enshrined a right to holiday pay for temporary workers. It also delivers equity of pay and conditions including sick pay after a specified period of continued work.