On 17th August HMRC published a discussion document on tackling tax avoidance that seeks to strengthen the current rules by proposing penalties on enablers of tax avoidance schemes.

ARC considers that employment businesses that provide work finding services should be outside the scope of the proposals as they are already subject to agency tax legislation. Of key importance is that agencies should not be liable for the tax misdemeanours of others and that existing legislation in this area in any event requires modernising. This is more fully addressed in our manifesto published earlier this month.

Our full response to HMRC can be seen here.