Monday, 30 October 2017

Self-employed freelancers may be at risk in £1.2 billion tax crackdown.

LONDON — The Treasury is considering extending controversial new self-employment rules to the private sector as part of a crackdown on tax avoidance.

In April, new rules were introduced to target temporary public sector workers employed "off payroll," who were deemed not to be genuine freelancers. Those who would have been classed as employees if they were providing their services directly, rather than through personal service companies — an arrangement which is taxed more lightly — lost a substantial amount of their take-home pay as a result.

Last week, financial secretary Mel Stride told the Financial Times there was "an issue of fairness" regarding whether public and private sector workers should be subject to the same rules. If the rules are extended to the private sector, thousands of freelance workers could also be subject to this tax crackdown.

The cost of non-compliance in the private sector is estimated to rise to £1.2 billion in lost taxes a year by 2022/23. HMRC has been under pressure in recent years to increase tax receipts and crack down on tax avoidance and evasion.

By Camilla Hodgson.

Full story at Yahoo News.

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