HMRC’s original proposals for offshore employment intermediaries were shelved following consultation. Tracey Wright considers the impact of the department’s revised proposals.
On 30 May 2013 HMRC published a consultation titled Offshore employment intermediaries with proposals on how to counter perceived avoidance of NIC and income tax by offshore employment intermediaries with UK workers.
The consultation stemmed from government concerns that there has been a growing trend for workers based in the UK working for UK based companies to be employed by offshore employers where such arrangements were being set up to minimise the NIC and sometimes PAYE payable by such employers.
The proposals were widely criticised. HMRC published its response to the consultation on 14 October 2013 and set out new proposals seeking to address the same objectives.
In this...
