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Employment Status – Latest News

30th November 2015

Determining whether a worker is employed or self-employed for tax and National Insurance purposes can be complex. 

Following the Autumn Statement, the Treasury has published the Government’s response to the Office of Tax Simplification’s review of employment status and will be taking forward 17 of its proposals (published in its 2015 report).

A few of the key areas that will be subject to further consideration include:

  • A joint review of agreed employment status principles between HM Revenue & Customs, HM Treasury, DWP and the Department for Business, Innovation and Skills;
  • Application for particular easements and concessions should be formalised into Statements of Practice;
  • Improvements and enhancements to HMRC’s “Employment Status Indicator” tool;
  • Further practical guidance to be published by HMRC;
  • Question as to whether tax with-holding is a viable proposition; and
  • Conduct a full study to merge or align the tax and National Insurance rules.

What is clear is the Government has rejected the idea of introducing a de minimis level whereby PAYE will not need to be applied.

We are waiting for further clarification from the Government as to how it intends to take matters forward. However, until the Government announces any changes, the question of Employment Status will need to be considered very carefully.

If you should have any questions, please contact your normal haysmacintyre contact, or Nick Bustin, Director of Employment Taxes.

Nick Bustin
Director of Employment Tax
T: +44 20 7969 5578