Budget 2011 - Sting in the tail !!

[Alan Jones]

There is a throwaway sentence in a document published yesterday that none of the Budget commentators have picked up. It is in the Document "Tackling Tax Avoidance" and states:

“In addition to the work outlined above, specific changes included in Finance Bill 2011 will address a long-standing area of risk where payments though intermediary arrangements have been used to avoid PAYE and National Insurance Contributions (NICs)."

This is a very vague statement. We will not know until the Finance Bill is published on 31 March 2011 whether it will attack/stop any of the current IR35 schemes being promoted i.e such schemes may pass the Tax on Disguised Remuneration Law BUT fail some other provision to be announced on 31 March.

PLUS it is very unusual to make such a vague statement i.e. they are promising definite changes will be announced on 31 March in the Finance Bill BUT without any indication of what they are. In the past Govt/Treasury/HMRC have made statements and released draft legislation at the same time.

[Vallah]

There is a throwaway sentence in a document published yesterday that none of the Budget commentators have picked up. It is in the Document "Tackling Tax Avoidance" and states:

“In addition to the work outlined above, specific changes included in Finance Bill 2011 will address a long-standing area of risk where payments though intermediary arrangements have been used to avoid PAYE and National Insurance Contributions (NICs)."

This is a very vague statement. We will not know until the Finance Bill is published on 31 March 2011 whether it will attack/stop any of the current IR35 schemes being promoted i.e such schemes may pass the Tax on Disguised Remuneration Law BUT fail some other provision to be announced on 31 March.

PLUS it is very unusual to make such a vague statement i.e. they are promising definite changes will be announced on 31 March in the Finance Bill BUT without any indication of what they are. In the past Govt/Treasury/HMRC have made statements and released draft legislation at the same time.

Surely it's just reference to the Dec 9 legislation concerning disguised remuneration? Doesn't seem at all vague to me. They talk about working towards a GAAR regime above your quoted bit, and then the bit you mention concerns the Dec 9 announcement. Unless I'm reading it wrong.