A leading think tank has called for a major reform of the UK tax system to create a level playing field for employees, the self-employed, and company owner-managers.
Rapidly rising self-employment and the incorporation of small businesses erode tax revenues, Chancellor Philip Hammond noted in the autumn statement. The government is considering “how we can ensure that the taxation of different ways of working is fair between different individuals and sustains the tax base as the economy undergoes rapid change,” Hammond said.
In a report published on February 3, researchers at the Institute for Fiscal Studies set out how the tax system can be made “fairer and more efficient”.
“The massive tax advantages that come with working for your own business are not new and not justified,” the report says.