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OTS publishes terms of reference for its review on employment status

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The Office of Tax Simplification (OTS) has published the terms of reference for its reviews of how current law distinguishes between employment and self-employment, and how to improve the current regime of civil penalties for tax non-compliance.

The OTS will consider, in particular:

  • whether the UK’s current employment status tests result in real uncertainty and if so, for what sections of the workforce and in which areas;
  • sectors and types of engagement with the labour market where difficulties in administering the tax rules are relatively common for any or all of those involved with the tax system;
  • how well current rules and guidelines fit with situations where individuals have multiple roles; whether the key distinction is between working and not working;
  • trends in employment law; and
  • HMRC guidance and advice.

The review will not cover IR35, the construction industry scheme or expenses rules. The penalties review will not cover non-financial penalties or discovery. The OTS is due to produce its reports in time for Budget 2015.

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