Employment Taxes


The CIOT comments sent to HMT on the call for evidence on taxation of employee expenses.

The Low Incomes Tax Reform Group (LITRG) has urged the Taylor Review of employment practices to recommend a comprehensive reassessment of the relationship between taxation and the growth in non-standard work, such as people working in the ‘gig economy’.

The CIOT comments sent to the Department for Business, Energy & Industrial Strategy on the Independent Review of the Employment Practices in the Modern Economy (Taylor review).

The Work and Pensions Committee’s inquiry into self-employment and the ‘gig economy’ continued with a session with Matthew Taylor. Taylor is Chief Executive of the of the RSA and leader of the Department of Business, Energy and Industrial Strategy’s independent review on modern employment practices.

How different ways of working should be taxed was the topic in the latest CIOT/IFS debate, held at the RSA on Monday (20 March 2017)

Work and Pensions Committee continues to call witnesses to discuss  self-employment and the gig economy. The Committee took evidence from, among other people, Victoria Todd of the Low Incomes Tax Reform Group (LITRG).

Following criticism, including by some Conservative MPs, of his decision to raise Class 4 National Insurance (paid by the self-employed), Chancellor Philip Hammond announced in a parliamentary statement that he would be dropping the proposal. The u-turn was welcomed by MPs across the political spectrum.

The four day Budget debate continued in the early part of this week, ahead of the Chancellor’s announcement of a u-turn on national insurance. A summary of days three and four are below. A summary of the debates on day one and two can be found here.

The draft Finance Bill 2017 legislation aims to limit the range of benefits-in-kind (BIKs) that receive income tax and National Insurance Contributions (NICs) advantages when they are provided as part of salary sacrifice and flexible benefit arrangements. Some amendments to the draft legislation have been included in the Finance Bill and the CIOT will be responding separately in this respect (and to HMRC’s draft guidance).

We attach a note from HMRC clarifying the position in relation to Scottish income tax thresholds and employer provided childcare vouchers.