Buzz People

Hammond plans tax crackdown on 'synthetic self-employed

The Treasury is finalising plans to overhaul tax rules which allow self-employed people to avoid paying national insurance contributions.
The move will be targeted at people who set themselves up as private companies to take on work.
The BBC understands it could be announced in this month's Budget.
The Treasury believes a third of people claiming self-employed status as a "personal service company" are actually fu
ll employees and should pay more tax.
It says without reform, high levels of non-compliance with tax rules could cost HM Revenue and Customs, which collects taxes, £1.2bn a year by 2023.
It is now looking at demanding that firms which use personal service company contractors take legal responsibility for ensuring "off-payroll" contractors stick to the tax rules known as IR35.
A similar move in the public sector on "synthetic" self-employed has raised £410m extra in taxes since 2016, HMRC estimates suggest.
Full employees pay higher levels of national insurance compared with the self-employed.

https://www.bbc.co.uk/news/business-45822650

 
Register Now