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UK – Employment tax avoidance measures high on government’s agenda

03 December 2013

Recent reports indicate that the Government sees a close link between success in tackling tax and avoidance and its ability to deliver on other key projects, reports lawspeed.com. For example, Sky News has reported an impending government clampdown on tax avoidance by self-employed workers, stating that sources have said: "The money saved will help plug the £1.2 billion cost of expanding free school meals and bring in a married tax allowance".

Sky News and The Sun newspaper have both indicated that the Government is due to make an announcement in relation to curbing the use of self-employment as a means of avoiding national insurance, with plans expected to be outlined by the Chancellor, George Osborne, this Thursday.

The Treasury declined to respond to lawspeed.com’s request for a comment.

In a separate move on 20 November, it was announced that the House of Lords has formed a new Select Committee ‘to consider the consequences of the use of Personal Service Companies for tax collection’.

The Committee will be gathering evidence on a number of issues; including the use of Personal Service Companies, the effectiveness of the current IR35 regime and the role of umbrella companies. The Committee is expected to report on its findings around March 2014.

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