There is little prospect of the government showing the remotest inclination to relax its continuing clampdown on tax avoidance, with recent news reports suggesting that it will in fact pursue its quest to close loopholes with renewed vigour.
In an interview on BBC television’s Andrew Marr Show, for example, Mr Osborne said: “This government has taken step after step and the amount of tax we collect from people who were previously avoiding their tax goes up by billions of pounds over this parliament.”
The coalition believes there is a close link between its success in blocking tax avoidance and its ability to proceed with major projects. Of particular importance to some in the UK’s freelance contracting community, however, is a recent Sky News report that the government is to launch a new clampdown on tax avoidance strategies used by self-employed workers.
The report quoted a Treasury source, who said that “the money saved will help plug the £1.2bn cost of expanding free school meals and bring in a married tax allowance.”
According to both the Sun newspaper and Sky News, the chancellor will outline plans to curb the use of self-employment as a means of dodging national insurance contributions in his much-anticipated autumn statement on Thursday this week.
Additionally, a new House of Lords select committee has been formed to collect evidence on the effectiveness of IR35 legislation as currently implemented, the use of PSCs, and the role of Umbrella Companies.
The committee plans to publish its findings in March next year.