Following the Pimlico Plumbers case [2018] UKSC 29, head of tax at the IFS, Helen Miller, has described as ‘logically flawed’ the argument that aligning the definition of self-employment across tax and employment law can be justified by lower taxes on the self-employed to offset the advantages of employment rights.
Miller said: ‘The presence of employment rights should not be interpreted as the government favouring employment over self-employment overall in a way that might justify an offsetting tax differential. Tax differences across legal forms simply act to bias the labour market away from employment and towards self-employment and they do this regardless of how employment rights are designed.’
‘The government has not stated clearly why it thinks the tax advantage for self-employment should exist,’ she added. See https://bit.ly/2I5R2Lx.
Following the Pimlico Plumbers case [2018] UKSC 29, head of tax at the IFS, Helen Miller, has described as ‘logically flawed’ the argument that aligning the definition of self-employment across tax and employment law can be justified by lower taxes on the self-employed to offset the advantages of employment rights.
Miller said: ‘The presence of employment rights should not be interpreted as the government favouring employment over self-employment overall in a way that might justify an offsetting tax differential. Tax differences across legal forms simply act to bias the labour market away from employment and towards self-employment and they do this regardless of how employment rights are designed.’
‘The government has not stated clearly why it thinks the tax advantage for self-employment should exist,’ she added. See https://bit.ly/2I5R2Lx.
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