Published date: 6 January 2023
Last edited date: 10 January 2023
Awarded contract - This means that the contract has been awarded to a supplier.
Contract summary
Industry
Research services - 73110000
Location of contract
M60 3BS
Value of contract
£185,000
Procurement reference
CW84183
Published date
6 January 2023
Closing date
1 November 2022
Closing time
4pm
Contract start date
15 December 2022
Contract end date
14 June 2024
Contract type
Service contract
Procedure type
Call-off from a dynamic purchasing system
A mini-competition or direct purchase from a pre-established dynamic purchasing system.
Contract is suitable for SMEs?
Yes
Contract is suitable for VCSEs?
No
Description
The changing business models in the labour market is one of the biggest challenges facing the tax system, with significant Exchequer impacts and compliance challenges for HMRC. Problems will persist until the employment status system is reformed.
To make evidenced decisions about reforms, fiscal and economic impacts must be known. Existing data is not sufficient to robustly estimate the size of employment status categories post-pandemic, or determine how individuals might be affected by reforms. New primary research is needed to gather evidence, update previous research findings, behavioural impacts of the current regime, and effects of working through intermediaries.
Despite prior employment status research conducted in 2018, HMRC holds limited data on employment status post-pandemic, and senior decision-makers are increasingly interested in reform. Research is required to provide estimates of the current labour market and determine the extent to which individuals would be affected by reforms.
This research would provide data on types of work individuals undertake against the current employment status criteria, the effects the current regime has on engagement choices by employers/engagers, and which types of engagers workers are involved with and by whom. Qualitative interviews will also help establish the wider impacts of options for reform, as the FST is keen for us to build individual-level data to create case studies of the worker population.
Research is key to informing potential employment status reform and providing employment status data post-pandemic. It will ensure any policy development by HMRC/HMT are evidence-based and focussed on ministerial priorities.
HMRC requires a quantitative survey of individuals to obtain representative demographic and tax-status data on the worker population, followed by 30 qualitative follow-up interviews with individuals and engager's behaviour and decision-making processes when it comes to employment status. This means we can provide estimates of the worker population, and compare the findings to previous research conducted by HMRC.
Employment law recognises three distinct employment categories (employee, worker, self-employed), the tax system only has two: employed and self-employed. The rules determine whether individuals and their engagers pay tax and NICs on an employed or self-employed basis. The rules are open to interpretation and can be difficult for individuals and businesses to apply and for HMRC to enforce, leading to mis-categorisation and loss of tax and NICs for the Exchequer. We have made the case to seniors, FST and CX that the current system is not sustainable and needs reform due to these risks to the Exchequer.
Award information
Awarded date
12 December 2022
Contract start date
15 December 2022
Contract end date
14 December 2024
Total value of contract
£185,000
This contract was awarded to 1 supplier.
NatCen
Address
35 Northampton Square, London, EC1V 0AX
Reference
Companies House number: 04392418
Value of contract
£185,000
Supplier is SME?
Yes
Supplier is VCSE?
No
About the buyer
Contact name
Rebecca Yeates
Address
Trinity Bridge House
2 Dearmans Place
Salford
M35BS
England
Telephone
03000 585186
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Closing: 1 November 2022, 4pm
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