OTS suggests PAYE equivalent for online platform workers

Online platforms could operate a system equivalent to PAYE deducting tax from earnings and taking responsibility for fulfilling the tax obligations of their workers according to the Office of Tax Simplification (OTS).

In its third paper on employment status the OTS says the switch could be optional and would not change the status of any worker. It is urging the government to consider the proposals.

However Paul Morton OTS tax director said: ‘For those who chose it it would remove the administrative burden from these individuals and mean that they should not get an unexpected tax demand at the end of the year. It would also make tax collection more efficient.’

The paper also states that HMRC should:

• focus on the development of guidance and ensure it is readily available and targeted;
• engage with technology developers...