Despite the recent announcement that the Office of Tax Simplification (“OTS”) will close from the date of Royal Assent to the next Finance Bill, the OTS is continuing its review into hybrid and distance working via a call for evidence. However, this will now close later this month on Friday 28 October 2022. The review aims to examine the emerging trends in hybrid and distance working, in the UK and across borders, and any pressures they put on existing tax rules and guidance.
The review will also consider whether the tax and social security rules are flexible enough to cope, and what businesses, advisors and other bodies are experiencing as new ways of working become business as usual.
It will cover:-
- Working across international borders, and what that means for things like tax, social security, tax residence, and permanent establishment;
- How accommodation, travel, and other expenses work in a hybrid world, including who will pay and whether permanent workplace rules make sense;
- Application of short term business visitor rules, overseas workday relief, and modified payroll;
- The treatment and impact on pension contributions and share schemes; and
- The risks or otherwise of creating permanent establishments or even changing corporate residence.
In carrying out this work, the OTS will be mindful of:
- the likely implications of recommendations on the Exchequer, the tax gap and compliance with the tax system generally;
- the role and contribution of taxation advisers;
- the implications of these changes in different sectors of the economy and different regions or nations within the UK;
- examples of international experience or best practice and the work of the OECD in this area; and
- ·visas/rights to work and employment law.
Interested parties who wish to contribute can contact the OTS for a meeting, or send a written response to ots@ots.gov.uk.