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OTS begins employment status review

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Contractors and other interested parties will soon be able to have their say to the Office of Tax Simplification on its new review into employment status.

Approved by the Treasury last week, the review is of the dividing line between employment and self-employment and “whether it is drawn in the right place and in the right way.”

Despite seeming central to such an examination, IR35 will not be considered, on the basis that the OTS has already scrutinised the legislation and made recommendations on it in 2011.

“The recent report of the House of Lords Economic Affairs sub-committee has also examined the area,” the office said, adding that expenses rules will, for similar reasons, not feature in this review.

What OTS will consider is 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.

SOURCE: contractoruk.com

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