The government has announced its Growth Plan 2022. The key employment-related aspects are: the repeal of IR35 reforms introduced in 2017 and 2021; the removal of the bankers’ bonus cap; requirements for trade unions to put pay offers to a member vote and to maintain minimum service levels during strike action; reductions to income tax rates; an increase to the company share option plan limits. The government also reconfirmed plans to reverse a rise in National Insurance contributions and to scrap a planned health and social care levy.
In two recent cases, the Court of Appeal has provided some guidance on the test to determine if someone is an employee for tax purposes. In doing so, it considered and, in some key respects, distinguished the approach taken when determining whether someone is an employee or worker for the purposes of employment rights. The result may well be a different answer when determining status for tax purposes from the answer for the purposes of employment rights.