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REC gives new six week old legislation the once-over

The Recruitment & Employment Confederation says that six weeks in to the new Onshore Employment Intermediaries legislation now in effect, the results are clear.

The writing is on the wall when it comes to these new rules, says the REC. While the legislation has done wonders in illuminating those niggling little not-quite-illegal yet still morally reprehensible tax avoidance schemes that have been flying under the radar, the rules also have been giving contractors and other self-employed Brits a devil of a time in that there’s actually more market distortion now instead of less; oddly enough this was the exact opposite of what most people hoped the legislation would accomplish. In other words, things are bad enough that the REC has been meeting with Her Majesty’s Revenue & Customs in order to see if the worst of the fiddly bits can’t be sorted.

For what it’s worth, the fact that HMRC met with the trade industry body shows that the taxman is at least taking the problems seriously – and is admitting that there are some rather glaring deficiencies with this new legislation. It’s actually nice to see the Government responding to constructive criticism instead of just telling its detractors to jog on and deal with it. Of course there’s no guarantee that anything positive will come out of these talks – HMRC could just shrug its shoulders and say ‘well, we tried didn’t we?’ and then just barrel down the same path they’ve been on. Will that happen? Your guess is of course as good as mine – let’s hoping that things get better and not worse!

Honestly though it’s gratifying to know that the Government is trying to do something about tax avoidance, even though sometimes it seems that lawmakers have their heads up their collective arses based on their behaviour and their decisions. That’s not even me being a bit cheeky, either – it’s effectively the truth considering that you’d have to be completely blind, deaf and dumb to come up with some of these regulations and I can think of nowhere else you could stuff your head in order to fulfill all those criteria.

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