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The government is to strengthen legislation to block tax avoidance through offshore intermediaries: corporate forms put between UK workers and a UK business. They are based offshore, often in tax havens, and are used to side-step employment taxes.
HMRC estimate that at least 100,000 workers are being employed in this way and, in many cases, the staff member is unaware that his or her payroll is located offshore and tax is not being paid.
The government is to strengthen legislation to block tax avoidance through offshore intermediaries: corporate forms put between UK workers and a UK business. They are based offshore, often in tax havens, and are used to side-step employment taxes.
HMRC estimate that at least 100,000 workers are being employed in this way and, in many cases, the staff member is unaware that his or her payroll is located offshore and tax is not being paid.
The Revenue is set to be given powers to collect full employment taxes for UK workers, irrespective of where their payroll is located. The department will issue a consultation document in May on the design and operation of the measure; legislation is expected to be included in the 2014 Finance Bill.
It is envisaged that the new measures will come into force on 1 April 2014.
