Detail of outcome
Following consultation, the government has responded to feedback and developed a simplified proposal, which will be more effective at stopping the avoidance and place less of a burden on businesses. This document summarises the responses to the consultation and sets out the revised proposal.
These changes will be legislated for in the National Insurance Contributions Bill and in the next Finance Bill.
This consultation ran from to
A consultation on the use of offshore employers of workers based in the UK to avoid National Insurance and employment taxes.
At Budget 2013 the Chancellor announced the Government would consult on proposals to strengthen obligations to ensure the correct income tax and NICs are paid by offshore employment intermediaries. This consultation sets out the Government’s plans to create an income tax and NICs charge on offshore intermediaries employing workers in the UK and if the employer fails to pay, moving this charge to an onshore engager of the labour, in specified circumstances. The second part of the consultation relates to requirements to keep records and file returns with HMRC.
The consultation seeks views on the detailed design, operation and impacts of these proposals with the intention that the new policy comes into effect from April 2014.
Draft legislation relating to proposals to strengthen obligations to ensure the correct NICs and taxes are paid by offshore employment intermediaries can also be found on this page.