Right to Work Checks to Be Extended to Gig Economy

hmrc tax investigation

IN THIS ARTICLE

The government plans to expand the scope of right to work checks through a new clause in the Border Security, Asylum and Immigration Bill.

At present, checks are required only for individuals working under standard employment contracts. Under the updated rules, these checks would also apply to less traditional arrangements, such as casual workers, individual subcontractors and those working through online platforms.

Many employers using flexible models, such as those in the gig economy, are currently not required to carry out these checks. The government says this has allowed illegal working to go unchecked in some sectors, leading to worker exploitation and lost tax revenue.

The government has said it will consult with affected businesses before the new rules come into force. The aim is to better understand how different sectors operate and to develop clear guidance. There will be a lead-in period between publishing the guidance and starting enforcement, giving employers time to prepare.

The new rules are expected to take effect by 2026 or 2027.

 
 
 

Author

Gill Laing is a qualified Legal Researcher & Analyst with niche specialisms in Law, Tax, Human Resources, Immigration & Employment Law.

Gill is a Multiple Business Owner and the Managing Director of Prof Services Limited - a Marketing & Content Agency for the Professional Services Sector.

About Taxoo

Taxoo is an essential multimedia content destination for UK businesses. From tax, accounting and finance, to legal, HR and marketing, we provide practical insights to guide you through the challenges and opportunities of running a business. Find out more here

Legal Disclaimer

The matters contained in this article are intended to be for general information purposes only. This article does not constitute legal or financial advice, nor is it a complete or authoritative statement of the law or tax rules and should not be treated as such. Whilst every effort is made to ensure that the information is correct, no warranty, express or implied, is given as to its accuracy and no liability is accepted for any error or omission. Before acting on any of the information contained herein, expert professional advice should be sought.

taxoo sign up

Subscribe to our newsletter

Filled with practical insights, news and trends, you can stay informed and be inspired to take your business forward with energy and confidence.