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OTS scoping document for review of tax implications of hybrid and distance working

13-September-2022
13-September-2022 10:04
in General
by Admin

 

On 27 July 2022, the Office of Tax Simplification (OTS) published a scoping document for the review it is going to undertake, examining the tax and social security implications of changing working practices. The scoping document sets out themes which will be covered in a call for evidence on the emerging trends and tax implications of hybrid and distance working.

 

The practices being considered include home working, hybrid arrangements, employees working overseas for UK employers and employees working in the UK for overseas employers. The review will focus on income tax, NICs and corporation tax and will consider evidence of, and research into, how the trends in working practices are likely to develop over time.

 

The review will:
• Consider the challenges to employer and employee compliance, how employers' practices are changing to address these new ways of working and the implications for government both in terms of setting policy and operationally.
• Focus on the impact of cross-border arrangements, where work is across multiple countries, including considering the allocation of primary taxing rights, the need for double tax relief, the treatment of expenses and the creation of permanent establishments for corporation tax, as well as the implications for the short-term business visitor rules, overseas workday relief and PAYE.
• Extend to the tax consequences of remote working arrangements on share schemes and pension contributions.

The review will also consider the implications of any OTS recommendations on tax compliance and tax revenues, the effect on different sectors of the economy, and will be mindful of international best practice, the work of the OECD and employment law.

 

The review will also consider the implications of any OTS recommendations on tax compliance and tax revenues, the effect on different sectors of the economy, and will be mindful of international best practice, the work of the OECD and employment law.