By changing the payroll arrangements outside of the UK, employers operating via offshore intermediaries may be able to avoid paying tax and national insurance contributions in respect of UK workers remuneration. The government as estimated that around 100,000 UK workers have their affairs structured in this way, some not knowing, and may end up being ineligible for state-funded maternity or sick leave.
LITRG Technically Director Robin Williamson explained the Group campaign: t is not unusual for employers to delegate their payroll obligations to intermediaries, some of whom may be based offshore. Some intermediaries account for tax and NICs properly, but others engage in imaginative, sometimes even abusive, schemes which result in tax and NICs being avoided. br /> he Exchequer loses out from such schemes, but the real victims are the workers themselves. They often have no real choice but to accept offers of work even if the terms look unacceptable to them. If they accept, they may face investigation by HMRC years later, particularly if HMRC cannot get at the employment intermediaries."
e trust that the protection of these low-income workers will be a paramount concern in the consultation. /p>
