The government has been called on to change its policy on employment relations and agency tax by the Association of Recruitment Consultancies (ARC).

The legal and recruitment professionals trade body has published a blueprint for changing and modernising the government’s policy.

The manifesto, entitled Post Brexit: A better place for doing business, calls on the government to adopt a single, positive overarching policy towards the recruitment sector, scrap outdated tests in agency tax rules and replace them with a tax payment policy based on supply as a common factor.

It also asks the government to create a tax relief policy that applies to all agency workers, implement a joined up tax approach and remove the ability for agency workers to claim employment rights against hirers.

ARC Chairman Adrian Marlowe said “We can do nothing about the uncertainty or the eventual outcome from Brexit, but while there is an air of change, let’s take the opportunity to present a strong vision that addresses longstanding issues.

“The UK recruitment supply sector can be more efficient if you remove unnecessary administration and risk, particularly in the areas of tax and employment relations.

Marlowe went on to say that the government should distance itself from outdated methods that have failed, such as the test of supervision, direction or control, which cause confusion, but that doing would require both modernisation and a new way of thinking.