Freelancers call for tax clarity

Posted on 03 Dec 2015
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Freelancers call for clarity on taxBritain's legion of self-employed private sector contractors have called for clarity on the government’s plans to change the tax rules covering their jobs. In last October’s budget, Philip Hammond postponed plans to expand "off-payroll" working rules into the private sector, but only until April 2020. Under the proposals, tax bills for self-employed workers would rise if they provide employment through their own personal service company (PSC). The move is intended to crack down on “disguised employment”, and the exchequer has said it could be missing out on up to £1.2bn in tax a year by 2023 unless the rules are changed. However, there is still confusion among company bosses over when a worker should be classified as a contractor and when they are an employee.

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