The Office of Tax Simplification (OTS) has launched a new project, which aims to explore how tax reporting and payment arrangements for self-employed people can be simplified.
Introducing the project, the OTS stated: ‘The OTS has heard that some, including some of those working freelance or in the gig economy, would welcome the option to report information and pay tax to HMRC periodically or on the completion of work assignments, rather than only through self-assessment.’
The OTS intends to explore options concerning information reporting and paying tax in or closer to real-time, which could ‘make it simpler for people who are self-employed or receive private residential property income to meet their tax obligations in a practical and streamlined way’.
In the report, the OTS said that it understands that self-employed individuals ‘work in diverse ways and contexts’. As a result, it is ‘quite possible‘ that there will not be one single approach to simplifying tax reporting. The OTS intends to give consideration to the merits of having different approaches for different groups, or creating one overall system with sub-options.
The OTS will publish an initial paper on the matter in the Autumn – in the meantime, you can read the summary proposals here.