UK tax authorities recovered an extra £819m in 2018 from investigations into payroll taxes, with the clampdown on the gig economy a factor.
“Considering the scale that the gig economy has grown to, it is no surprise that it is now under intense scrutiny by HMRC,” says Paul Noble, tax investigations expert at Pinsent Masons, which carried out the research.
The government has increasingly been cracking down on organisations wrongly classifying workers as self-employed to avoid paying tax and national insurance contributions.
The UK last week unveiled its Good Work plan in an effort to resolve issues around the gig economy and false self-employment. The plan will aim to ensure all workers receive basic rights such as entitlements to holiday and sick pay, as well as the right to ask for more stable employment contracts.