TAAR to counter NIC avoidance by employment intermediaries

HM Treasury has announced that it will introduce a targeted anti-avoidance rule (TAAR) to counter false self-employment arrangements in relation to NIC ‘at the next available legislative opportunity’ with retrospective effect from 6 April 2014. This will complement the income tax TAAR in Finance Bill 2014 (cl 16 which inserts new s 46A into ITEPA 2003). David Gauke exchequer secretary to the Treasury said: ‘The government is fully committed to tackling tax and national insurance avoidance and will take the necessary steps to protect the exchequer and maintain fairness in the tax system.’