The review is considering whether tax rules need to be modernised to take into account changing work patterns since the pandemic.

The OTS has expressed concerns that the current tax system is not equipped to handle the changing work environment, for example when staff work abroad on an informal basis rather than on an expatriate contract.

‘With the drive to adapt to the changing market, and a breadth of regulations to consider, tax isn’t always the first thing on people’s minds when designing their policies,’ the OTS said. ‘Over 40 jurisdictions already offer ‘digital nomad’ visas to attract mobile workers, many of them aimed at a tax-free stay for the visitor.’

However, UK employment tax rules are old fashioned and have not responded to the new work patterns.