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Tax crackdown on self-employed

12 February 2014
Issue: 7594 / Categories: Legal News
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ELA warning over HMRC plans to close tax avoidance loophole 

Employment lawyers have warned HMRC plans to close a tax avoidance loophole could have unintended consequences for consultants and the self-employed.

HMRC has proposed legislation to crack down on a scheme whereby people use employment agencies to falsely set themselves up as self-employed in order to avoid tax and national insurance payments. It claims this practice leads to unfair competition and individuals being denied basic employment rights such as sick pay or the minimum wage.

However, the Employment Lawyers Association (ELA) argues the legislation, which is due to be implemented in April, is being rushed in, will mistakenly hit legitimate businesses and could spawn satellite litigation.

James Warren, chair of the ELA committee on the issue, says: “The government risks undermining its own objective of a simpler test for determining when remuneration must be treated as earnings from employment by making the position more uncertain and complex with its proposals.”

Issue: 7594 / Categories: Legal News
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MOVERS & SHAKERS

Slater Heelis—Chester office

Slater Heelis—Chester office

North West presence strengthened with Chester office launch

Cooke, Young & Keidan—Elizabeth Meade

Cooke, Young & Keidan—Elizabeth Meade

Firm grows commercial disputes expertise with partner promotion

CBI South-East Council—Mike Wilson

CBI South-East Council—Mike Wilson

Blake Morgan managing partner appointed chair of CBI South-East Council

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