With the election frenzy underway, Crawford Temple, CEO of Professional Passport, the UK’s largest independent assessor of payment intermediary compliance is urging the next Government to prioritise stamping out tax avoidance and stepping up enforcement.
We have heard the Conservatives promise to raise £6bn by tackling tax avoidance and Labour promising to raise £5bn as part of their election campaigns and whilst they clearly need to generate a golden pot of money to fund their ideals and tackling tax avoidance is to be applauded, we have heard these idle promises before.
For too long now, unscrupulous operators have exploited loopholes and skirted regulations, depriving the Treasury of much-needed revenue.
The umbrella industry, in particular, has become a breeding ground for dubious schemes that promise workers higher take-home pay, when in reality, they are nothing more than thinly veiled tax avoidance vehicles. These “disguised remuneration” arrangements are not only unethical but also illegal, duping hardworking individuals into them under false pretences.
We want to see enhanced enforcement efforts, coupled with stringent penalties for those found guilty of orchestrating such schemes and a strong commitment and action that the new Government will not tolerate any form of tax evasion or avoidance – the time for talking is over, action is needed.
However, enforcement alone is not enough. We must also focus on fostering a culture of compliance and transparency within the industry and the formation of a dedicated working group comprised of experts from the umbrella market, policymakers, and relevant stakeholders would be a sensible move to get things agreed and done.
A collegiate approach will not only ensure that any proposed regulations are well-informed and practical but will also help to build trust and cooperation between the government and the legitimate players within the sector. By working together, we can identify and address the root causes of non-compliance, whilst promoting best practices and raising industry standards.
The road ahead will not be easy, but with a firm commitment to transparency, collaboration, and decisive action, we can turn the tide and create a more equitable and sustainable economic landscape and I look forward to working with the next Government to make that happen.
