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Independent Contractors Should Be Very Cautious Of New Legislation

John Jennings discusses the dangers associated with political backlash from new legislation, specifically the impact on independent contractors and umbrella companies.


(Wednesday, August 7th, 2013) United Kingdom -  John Jennings says that: “Anyone who seeks to earn their living as an independent contractor should be wary of any and all legislation that seeks to limit their choices or options. We like to believe that we live in a free society after all and should champion our ability to make whatever choices we like, so long as they are all legal and ethical, of course.”

“It’s particularly troubling therefore when we look at efforts in the United States Congress, where moves are afoot to ensure that independent contractors are not ”misclassified.“ According to Congress such misclassification can lead to lost revenues that result in billions of dollars in unpaid payroll taxes.”

Host John Jennings says: “If we look at previous Congressional sessions we can see more than one attempt to try to significantly hamstring the work of independent contractors by eliminating what is known as Section 530 of the Tax Code. This Section is a critical part of the Tax Code from the point of view of independent contractors and its elimination would certainly lead to wholesale change.

At this point John Jennings goes on to say: “For example, financial penalties for any employers who misclassify workers as independent contractors ”without a reasonable basis“ would be significantly increased. Of course the focus must be on the intended wording of such a penalty clause, but many experts believe that punitive language could force particular independent contractors to give up on their dream of being truly independent and force them to close their business operations.”

“With a wholesale restructuring of the corporate world and a significantly different approach to commerce since the recession of 2007 we have seen just how important it is for clients to have choices. Such choice and flexibility can often only be provided by those who trade independently and who do not bring onerous terms and conditions to the table.”

John then conveys the idea behind how: “In recent years we have seen our industry grow exponentially and this has led to the formation of independent contractor services designed to provide beneficial services and a helping hand to those who are otherwise going it alone in many respects. You can be sure that all organisations engaged in supplying independent contractor services will be going to bat to dissuade the United States Congress from taking hasty action.”

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