A Government plan to stop employees pretending they are private contractors to avoid National Insurance has raised more money than first thought, but has been costly for employers.
The National Audit Office found that HM Revenue and Customs might have “underestimated” the cost of the new reforms to public sector employers.
It had tried to update rules to make it more difficult for outside contractors to claim they were not on payroll. A 2017 change meant that public sector employers had responsibility for ensuring their contractors were not so-called “disguised employees”.
