Drivers
See also:
- REC Guide to starting an agency in the driving sector (June 2020)
- The REC also runs a sector group for drivers, providing policy and campaigning updates.
- Sector-specific terms and conditions for engaging drivers as agency workers, and supply agency workers to business:
- Contract 21 - terms of business with a hirer for the supply of agency workers (driving staff)
- Contract 22 - Terms of engagement for agency workers (contract for services) (driving staff)
- Document A - Assignment details form – Agency workers
- Document E - 48 hour opt out agreement - Agency workers
- Document G - Information request form - Agency workers
Tax status of drivers - enforcement action by HMRC
In April 2016, HMRC wrote to the Road Haulage Association about the tax status of drivers. The road haulage companies directly engaged the drivers (RHA members), but the drivers worked through their own companies.
In particular:
An area of particular concern has been the marketing of “own companies” as a way to avoid tax. We are finding evidence that haulage companies are sold the idea that they can set up, or have an agent set up companies for their workers and avoid tax. The companies and the workers appear to be unaware that there is legislation that may apply and allows HMRC to pursue workers, agents and the companies themselves. They could face investigation and significant tax bills. We think some companies are told, wrongly, that anti-avoidance legislation does not apply.
https://www.gov.uk/hmrc-internal-manuals/employment-status-manual/esm3505
https://www.gov.uk/guidance/ir35-find-out-if-it-applies
In some cases, we think that the arrangements go further than simply avoidance and evasion can be involved.
The Road Haulage Association have provided further information on this matter on their website.
You may also want to consult the REC Legal Guide entry on IR35 and employment status.
Disclaimer
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full terms and conditions on our website.