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Written question asked by Matthew Offord (Conservative) on Monday, 18 July 2022, in the House of Commons. It was due for an answer on Wednesday, 20 July 2022. It was answered by Lucy Frazer (Conservative) on Monday, 25 July 2022 on behalf of the Treasury.

Employment: Taxation

Question

To ask the Chancellor of the Exchequer, what progress his Department has made on implementing the recommendation of the Taylor Review on ensuring that the taxation of labour is consistent across all employment forms.

Answer

The Government recognises that differences in tax treatment for individuals across employment forms can have a fiscal impact and affect how people and businesses choose to provide or take on labour.

Good progress has been made in ensuring different forms of labour are taxed more consistently by, for example, addressing non-compliance with the off-payroll working rules, also known as IR35, which are designed to ensure that individuals working like employees but through their own company, usually a personal service company, pay broadly the same Income Tax and National Insurance contributions as those who are directly employed.

The Government announced a 1.25 percentage point increase in all dividend tax rates alongside the Health and Social Care levy, to ensure that those with dividend income make a contribution on that income in line with the contribution made by employees and the self-employed on their earnings.

The Government continues to keep all aspect of the tax system under review and any decisions on future changes will be taken as part of future fiscal events and in the context of wider public finances.

Secondary information

Type
Written question
Reference
38641
Session
2022-23
Transferred
Yes
Subjects
Employment Taxation Modern Working Practices Review
Link
View this Written question on www.parliament.uk