The taxman is targeting some of Britain’s wealthiest earners, including senior lawyers, accountants, architects and their employers.
HMRC is concerned that some people in these six figure salary sectors are playing the system to minimise their tax and National Insurance (NI) bills.
The tactic involves some of these high earners being described as self-employed or partners which allows them to reduce the tax and NI payable on their income. Their employers also benefit by reducing the NI they have to pay.
The HMRC has tweaked its interpretation of the rules to combat tax avoidance and ensure high earners and businesses cannot use this apparent loophole.
The legislation concerns whether senior partners at limited liability partnership (LLPs) should be deemed employed or self-employed for tax purposes.
The net effect of the new approach is that employees could be hit with big tax bills, while their employers could be forced to pay back hundreds of …