Spring Statement 2018- PwC comments on Gig economy and a missed opportunity on ring-fenced tax

Mar 13, 2018

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Commenting on the Chancellor’s Spring Statement, Kevin Nicholson, head of tax at PwC, said:

 

“The Government has put everyday users of gig platforms firmly in its sights with its consultation on the role of online platforms in ensuring tax compliance.

 

 

“This proposal is likely to prove the most far reaching of all the Spring Statement announcements, putting the responsibility for ensuring tax is paid squarely on the big gig platforms, arguably a sensible strategy given limited HMRC resourcing.

 

 

"It's PAYE for the gig economy - their consultation stresses it's all about helping people understand their tax liabilities, but it’s a case of the iron hand in the velvet glove.  This is about capturing the increasing amount of tax revenue seeping out through gig platforms.”

 

No NHS tax - a missed opportunity?

 

Kevin Nicholson, head of tax at PwC, added:

 

“Notably absent among the consultations, was any reference to a special tax for the NHS. Given continuing pressure on the NHS, and the need to increase transparency on tax, it’s surprising that the Government isn’t at least consulting on how a ring-fenced tax could work in practice.

 

"While hypothecated taxes increase complexity and are restrictive for governments, people like them. Our research suggests people want to know how their tax is spent, and when they do they mind paying it less.”

 

Ends

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