In the third of this five part series, Rutton Viccajee explains the headlines from the Autumn Statement 2016. This section looks specifically at ‘Avoidance and Evasion Provisions’. If you would like to know more about what the Chancellor has said (and Rutton’s analysis of why he said it), then read on…
Avoidance and evasion provisions
The Budget 2016 amendments will be extended to tackle the use of disguised remuneration schemes by the self-employed.
Also, new rules will apply to deny tax relief for employer’s contributions to such schemes unless tax and National Insurance are paid within a specific time period.
Well, what on earth have they got in mind? We are a little short on the detail here.
Are they after all those Uber drivers, and poor old Deliveroo cyclists with those huge igloos on their backs? Making them all employees (which they should probably be anyway)?
Or are they after many other grey market trades, where employers routinely take on the lower-paid as ‘self-employed’?
Unlikely. The reality is, many are simply breaking the existing law by calling their workers ‘self-employed’.
This measure is PROBABLY aimed at more sophisticated arrangements BUT we don’t really know. Watch this space…