LISTEN: Tax status of lorry drivers called into question
The Road Haulage Association is exclusively telling us firms are flouting the rules by wrongly registering lorry drivers as self-employed.
There is a growing illegality of lorry drivers who are breaking tax rules, according to the Road Haulage Association.
They say too many drivers classing themselves as self-employed to pay less and undercut their rivals.
HM Revenue and Customs say they are concerned by increasing pressure on haulage operators to wrongly treat workers as self-employed, or to hire workers through their own companies in ways that are not compliant with tax laws.
Haulage companies and workers are being sold schemes that are very aggressive and that they may not be told about tax (includes National Insurance contributions) legislation that catches these schemes.
This can lead to arrears of tax, interest and penalties. It is unfair that operators are being undercut by those who are not paying the right tax and we have been successfully targeting these schemes.
The RHA has told us this is a growing tide and is now one of their top priorities because they have a very strong SME mandate. Listen to their head of policy, Jack Semple, here:
The RHA represents the mainstream haulage and logistics sector, from owner-drivers to most of the large logistics firms.