Q. Does the plumber’s recent workers’ rights battle against Pimlico Plumbers undermine IR35 for contractors? The Supreme Court ruled that despite being self-employed, he was able to insist on workers rights. Could this open the floodgates for HMRC to capture more workers under IR35 but concede that they are allowed certain rights.
As a contractor, I don’t want paid sick days and paid holiday at the expense of paying the additional tax overhead of IR35.
Pimlico Plumbers source article: www.bbc.co.uk/news/business-44465639
A. No. The tax system only recognises two types of employment status, ie employee or self-employed, whereas employment law also tips its hat to a hybrid of these two, namely ‘worker’ status. ‘Worker’ entitles the individual to limited employment rights.