OTS: Gig economy in the UK could result in serious tax loses
The Office of Tax Simplification warns that as a result of the ‘hidden economy’ that is growing in the UK, the lost tax could escalate due to the ad hoc nature of employment as a result.
The Office of Tax Simplification has published a paper focusing on the nature of the growing ‘gig’ economy in the UK, whereby companies are contracting for short-term working contracts, and the shared economy where funds are generated by sharing or letting assets.
The paper suggests that the HMRC has a substantial communication issue as a result of such economy and may be contributing to an increase in an ‘underground economy’.
The OTS states it may have to consider a more formal review of the tax issues raised by the growing gig economy later in 2017.
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