ACCA welcomes National Insurance recommendations from the OTS as ‘crucial to future of UK plc’
Global accountancy body ACCA (the Association of chartered Certified Accountants) has welcomed proposals from the Office of Tax Simplification that look to tackle the complexities around whether someone is defined as employed or self-employed for tax purposes.
Chas Roy-Chowdhury, ACCA’s head of taxation, said: “With so many people moving into self-employment, serious consideration has to be given to aligning the National Insurance Contributions (NICs) rates between employees and the self-employed.
“In addition, the alignment of benefits would also allow for a safety net for future entrepreneurs, mitigating the risk of starting a business and encouraging a greater appetite for going it alone.
“As the Office of Tax Simplification (OTS) rightly points out, the UK tax regime in its current form is out-dated, outmoded and in many ways, unfit for purpose. There are now almost five million self-employed people working in the UK, making it the fastest growing sector of the European Labour Market.
“The system comes from a time when the mass entrepreneurialism of today simply didn’t exist and while the business world has evolved, the tax system hasn’t. We’ve not reached a point where reform isn’t just overdue, it’s vital if we want UK plc to keep pace in the global economic race.”
