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The Association of Professional Staffing Companies (APSCo) has briefed the Labour front bench on tax avoidance in the recruitment industry after having met with Catherine McKinnell MP, Shadow Exchequer Secretary and part of Labour’s Treasury team.
The organisation briefed the Labour politician on tax avoidance issues in the flexible labour market which has dogged the industry over the past year. Unscrupulous practices among some recruiters operating within the blue collar market have often meant that the staffing industry as a whole has been brought into disrepute.
“APSCo was grateful for the opportunity to brief the Labour front bench on tax avoidance and to explain the differences between those who may be forced into temporary work – and those professional contractors who are genuinely self-employed,” said APSCo’s Head of External Affairs, Sam Hurley.
“On average, these individuals pay around 10% less tax than an employee, but also have the expense and risk of running their own businesses without many of the benefits afforded to permanent employees. As the parties work towards their manifestos for the 2015 elections, it’s more important than ever that we educate MPs about the particular nuances of the professional recruitment sector and the benefits of the flexible labour market.”
APSCo said the Labour Party has played an prominent role in exposing tax avoidance, particularly around the issue of inappropriate use of personal service companies and the abuse of interim arrangements. But the association said that the legitimate tax advantages of contracting should be maintained.
“We support legislation to protect the vulnerable and expose the unscrupulous”, added Ms Hurley. “But APSCo has always been clear that vulnerability and unscrupulousness are not features of professional recruitment.”