Universal credit can make freelancers lose thousands of pounds each year when compared to their full-time counterparts in the same tax bracket. The delay comes after Charmaine Parkin, a single mother of two, began the process of taking the government to court over Universal Credit in December.
She claims that Universal Credit discriminates against the self-employed, after the Department for Work and Pensions calculated that she would only be left with £8.89 per month because the calculations do not consider fluctuations in self-employed.
Although the plans to raise tax bills for the self-employed, who provide employment through their own PSC (personal service company), have been delayed, there are still important aspects of how the government defines employment that must be cleared up before the changes in economic reform are made.
Uber drivers have been ruled as workers, not self-employed, again by the Court of Appeal after judges found that Uber had the right to disconnect drivers from the app for a period if they turn down passengers too frequently.
This was met with complex reactions, but the main takeaway from these cases are that defining employment in the UK is immensely more complicated than believed.
This is now the third time that this choice has been made against Uber, which forces the question: when are they going to accept the ruling and pay drivers what they’re owed? Apparently no time soon, as they’re taking the case to the Supreme Court next.
Some companies such as Didi, Uber’s Chinese counterpart, have elected to pivot to fintech in order to avoid such changes in regulation.
2019 has begun with some serious issues that need to be addressed by the government.