At JJC we promote the legacy of Jane Jefferson to “treat others as you yourself would like to be treated”. She believed that high standards and worker satisfaction are integral to good service.
We are putting her values into practice and working to change an unscrupulous industry so that consumers can make an ethical choice when purchasing cleaning services. Our business model gives workers fair pay and employment rights that the black and grey market denies to tens of thousands.
To change an industry, we need other potential employers to stand with us. They do not because of high employment costs and the need to keep margins low because of the additional cost of VAT to the client on the total cost of the clean.
We believe that the VAT charge is prohibitive for driving growth in this sector.
During 2017, Jennifer O’Donnell JJC Director set an agenda to make change through policy and to find a way to open a market that will enable ethical employers to compete.
She met with Paul Broadbent, CEO Gangmasters & Labour Abuse Authority and they agreed to drive a proposal of change that would enable any domestic cleaning company that held a GLA license to be VAT exempt.
In October she wrote to the Chancellor of The Exchequer to ask him to consider tax changes, especially in that no revenue is currently being received in VAT from domestic cleaning companies because there are no companies operating in a model that charges it and that with changes there could be considerably more tax revenue from PAYE. The response was that VAT is a pan European tax and until Brexit these tax changes could not be considered. On Sunday 11th March an article in the Financial Times indicates that the Chancellor is now willing to consider potential changes and that the levy ‘s design is restricting growth across all sectors. We have requested to supply evidence to this.
Jennifer has also been lobbying several MP’s and she met with Sir David Metcalfe, the Director of Labour Market Enforcement who agreed to reference JJC as a case study to this issue in his strategy document for government.
Jennifer also campaigned in several media appearances including Radio 4, Radio 5 live, BBC WorldService, BBC Channel News, BBC Breakfast News Election Broadcast & BBC Breakfast News Business Section. Watch her in previous posts and we will provide further updates in our next quarterly blog.