HMRC Accused Of Allowing Tax Base To Erode Over Self Employment

GMB the union for workers in Uber, DX and Hermes is accusing HMRC of presiding over the erosion of the tax base across the economy arising from growing forced self employment that is reducing exchequer tax returns from record levels of economic activity in the UK.

GMB sought a meeting with HMRC to discuss implementation of the national minimum wage legislation at Uber and other employers using forced self employment following recent tribunal decisions that the workforce are actually workers.

The meeting took place on 23 February and the outcome is that HMRC has no plans to deal with the tax avoidance and erosion of the tax base arising from forced self employment.

A recent poll commissioned by GMB revealed 92% of those questioned thought that HMRC enforcement of national minimum wage and the collection of taxes are important.

Maria Ludkin, GMB Legal Director said: "It is staggering that HMRC has no proactive plans to use its extensive tax gathering and enforcement powers of the national minimum wage to crack down on forced self employment following the recent string of employment tribunal rulings on this.

"It is an invitation to companies to try to duck tax responsibilities.

"This is simply an issue of enforcement which not carried out means more honest taxpayers have to make up the shortfall.

"HMRC are presiding over the erosion of the tax base of the economy at a time when there are record levels of economic activity in the UK.

"Is it any wonder that funds to the Exchequer have not kept pace with this growth?

"HMRC has allowed Uber to run rings around it on forced self employment.

"Uber UK generates revenues of £115m which is enough to pay around 4,300 full time drivers on the national living wage after vehicle running costs are taken in to account.

"If all 25,000 drivers were earning £7.20 per hour after vehicle running costs then each driver will work for an average of 8.6 hours per week.

"HMRC must look at these figures as there is evidence that after running costs are included Uber is in breach of minimum wage legislation. As yet, HMRC have done nothing .

"It is the same with Deliveroo. Has HMRC examined who actually employs the cooks and chefs working in the industrial estates in Battersea, Dulwich or Blackwall cooking posh nosh for West End restaurants?

"With recent cases challenging self-employed status involving Uber, Deliveroo, DX and Pimlico Plumbers, when will HMRC wake up and start to take action.

"GMB consider that Parliament has to hold HMRC to account for this supine acquiescing to the erosion of the tax base from forced self employment at a time of a squeeze on public services and public sector deficits. This cannot be allowed to continue."