APSCo respond to Office of Tax Simplification recommendations

(2 minutes to read)


The recent Office of Tax Simplification discussion paper suggests that the government should compel gig economy platforms such as Uber and Deliveroo, to offer to deduct tax from earnings and transfer it to HMRC.

The Association of Professional Staffing Companies (APSCo) has responded to this latest news.

APSCo Operations Director, Samantha Hurley, said, “This is an interesting development as HMRC is currently consulting on off-payroll working in the private sector whether direct or through an intermediary and I imagine that the OTS report will feed into this.  While a withholding tax was suggested as an option in a previous consultation, HMRC has ruled this out telling us that they feel that a system of withholding tax from everyone and then expecting those who were genuinely self-employed to claim back wrongly paid tax, would be inherently unfair. This new OFT recommendation is, of course slightly different in that it suggests withholding tax from workers who are, in fact, determined as self-employed. Consequently, it is likely that the end client would need to undertake a status determination.”

“HMRC’s preferred option is to roll out the current public sector off payroll rules into the private sector in which case the status of all payroll workers would need to be determined by the end client and appropriate taxes deducted. Whether a worker could then opt in to a withholding tax if found outside IR35 is an interesting idea as arguably it could help workers who struggle with the fiscal management and compliance requirements of being self-employed.”

Working in the Public Sector and wondering if your contract is inside of IR35? please give us a call on 01206 591 000 or email info@contractorumbrella.com to discuss your contract.

You may also like to read:

How does an umbrella company work?

How does Contractor Umbrella calculate your pay?


You may also like to read

APSCo urges HMT to delay IR35 changes

The APSCo is saddened to hear that Her Majesty’s Treasury is finalising plans to extend off-payroll rules to the private ...

Read More

Contractor wins case against HMRC

A contractor has successfully claimed for unpaid holiday pay after HMRC determined that IR35 applied to her engagement and insisted ...

Read More

HMRC letting down self-employed workers

The Association of Independent Professionals and the Self-Employed (IPSE) believes that the government is letting down the UK’s contractors after ...

Read More

Still thinking about if you should join Dolan Accountancy?

Give us a call on 01206 591 000 or email charlie.brooks@dolanaccountancy.com


One week margin free when you sign up with Contractor Umbrella today!
Hurry - Deal ends at midnight tonight.
      Terms and Conditions: 
1 week margin free or £25 reduction on monthly margin. Online registration form must be completed by midnight 6th December 2019. Payment must be processed and margin redeemed by 31st December 2019.