OTS calls for simpler rules on employment status tax issues

The rules for employment status tax issues need to be overhauled, according to the latest report from the Office of Tax Simplification (OTS) which is calling for clearer guidance from HMRC when dealing with employment status tax compliance issues around defining whether people are self-employed, including greater manpower resources at the tax office and a dedicated telephone helpline

In a new report, the OTS sets out proposals to simplify employment status tax issues, but it admits that wholescale reform of the self-employed rules is likely to require an overhaul of employers’ NICs.

The initial proposals in the report on employment status are likely to shape policy ahead of the Budget on 18 March 2015, and primarilty consider how to simplify the current system of determining whether a worker is employed or self-employed for tax purposes.

The recommendations in the report address the complexity of the current system, which has different tests for employment used for tax, employment law and pensions auto-enrolment.

Your free features:

Breaking news and expert analysis
Customisable daily newsletters
Six free CPD learning modules each year
Personalised CPD tracker
Top 75 Firms league tables
Regulatory changes
Hardman’s Tax Data

Business | Zero hours clampdown will cost businesses £2.9bn

Tax | VAT and PAYE payments will have to be made by direct debit

Tax | Monthly ‘payday’ tax bills for 7m self assessment PAYE taxpayers

Tax | Official HMRC manual on tax adviser registration clarifies rules

Business | Warning on tax adviser regulation by the backdoor

Navigate

Tax Services

Your free features:

Sign up to Business & Accountancy Daily