Tax avoidance measures high on government agenda
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.
Sky News has reported an impending government clamp down on tax avoidance by self-employed workers, stating that sources have said "the money saved will help plug the £1.2bn 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 this Thursday. The Treasury has declined to answer our own enquiries on this.
In a separate move on 20th 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.
Conclusion – stopping tax avoidance is high on the government list. Watch this space. Lawspeed will be tackling developments in this area at its Manchester seminar on 15th January, why not come?