Does the employer NIC threshold drive the use of zero-hour contracts?

08 May 2018

PRISM, a trade association that represents third-party payment intermediaries such as payroll companies and umbrella providers, has been at the forefront of the arguments surrounding Modern Employment and creating a tax framework to support the new emerging trends. They are garnering views on whether employer NIC should be based on whole payroll costs. Please spare a couple of minutes to partake in their short survey.

About the survey

PRISM has arranged a forthcoming roundtable event for lead organisations to discuss Modern Employment and the various Government consultations coming out of the Taylor Review. Organisations already confirmed as attending are the Low Incomes Tax Reform Group, ICAEW, ACCA, IOD, FSB and the Law Society to name just a few. HMRC, HM Treasury, BEIS and The Office of Tax Simplification have also been invited as observers.

One of the areas of interest is the employers’ National Insurance threshold. There is growing evidence that this incentive is driving the wrong behaviours in Modern Employment and PRISM are keen to obtain the views of employers on how, and if, they use this incentive as part of their resourcing strategy. To this end, a simple survey has been created to gain the views of employers and their representatives.

The results of the survey will be fed into the roundtable and will help shape the direction of policy recommendations. The survey is short and should take no more than a couple of minutes of your time.

Further reading

In 2016, PRISM engaged a well-respected independent think tank, The Social Market Foundation, to look at the whole area of tax and employment trends. Their report, Rules of Engagement, was published prior to the Taylor Report and covered areas beyond the scope of Taylor. The report can be accessed through the PRISM website.

Following the publication of the Taylor Report and the coverage this received, PRISM created their own report and recommendations, The Case for Structural Reform. This report highlights incentives and shortcomings in the tax system that PRISM believes need to be addressed by creating a medium to long-term strategic plan for change.