Taylor review calls for public debate on gig economy solutions

The UK government said it will not “revisit” the issue of the self-employed rate of national insurance contributions (NICs) after a team commissioned to review the gig economy endorsed the principles behind the government’s attempt to increase the rate in the spring 2017 budget.

NICs paid by employees and by self-employed people should be “moved closer to parity,” according to the team’s report titled “Good Work: The Taylor Review of Modern Working Practices,” published July 11.

Led by Matthew Taylor, chief executive of the RSA think tank, the review team concluded that the taxation of labour should be made more consistent across forms of employment over the long term. The review was “only the latest in a series of studies to make the point,” and the team encouraged the government to raise public awareness of the issue and engage in debate with stakeholders about potential long-term solutions. Read more:

My news story for Tax Analysts, July 12 (paywall)