The outcome for this consultation was published on the OTS website on 20 December 2022.
OTS report on hybrid and distance working - GOV.UK (www.gov.uk)
The OTS has launched a review looking for evidence of trends in relation to increasing numbers of people choosing to work in different ways, including across borders.
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.
Given the Chancellors decision to close of the Office of Tax Simplification and for our work to conclude by the end of 2022, we have decided to shorten the consultation period and conclude the Call for Evidence on 28 October 2022 to allow time to publish a report this year reflecting responses.
You dont need to look far for evidence of the seismic change in working from home in the UK. People have come to expect more flexible working conditions, and businesses recognise that to retain and attract talent they need to offer that flexibility
With the drive to adapt to the changing market, and a breadth of regulations to consider, tax isnt always the first thing on peoples minds when designing their policies
Over forty jurisdictions already offer digital nomad visas to attract mobile workers, many of them aimed at a tax-free stay for the visitor
Even in the UK, rules and guidance around employee expenses, and concepts like permanent workplace, seem designed for traditional ways of working and may begin to feel stretched
You can contact us for a meeting, or to send your written response, at ots@ots.gov.uk.
The OTS is keen to engage with a wide variety of people to find out what is really happening in the market, and how businesses and advisors are adapting or planning to adapt.
We particularly want to speak to:
Employers and employees across a range of sectors and sizes, and
Self-employed people who may spend part of their time working in another country
We also have a Hybrid and distance working survey aimed at employees and the self-employed.
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
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
visas/rights to work and employment law
The Office of Tax Simplification (OTS) is the independent advisor to the government on simplifying the UK tax system. The OTS undertakes formal reviews commissioned by the Chancellor, and own initiative reviews covering many of the issues facing the UK tax system. This is an own initiative review by the OTS
On 27 July the OTS published a Scoping Note outlining their intention to look at hybrid and remote working
We will publish a report of our findings in late 2022
An index of all OTS publications is available
TheOTSis led by Board Chair Kathryn Cearns OBE and Tax Director Bill Dodwell and has a small staff team with backgrounds in the private sector, HM Treasury, and HMRC
Press enquiries only please contact Julie Gillespie,OTSPress Officer by phone on 03000 585028.
