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Employment tax for a modern and flexible workforce

The UK workforce is transforming. Employment tax isn’t keeping up.

As the way people work is changing – becoming more flexible, digital and international – the sources of tax revenues from work are changing too. In response to this shift, the government is tinkering with the ‘edges’ of employment tax without addressing the system as a whole. And this siloed strategy lumbers business with significant cost and disruption.

The change we’re calling for

We’re asking the government to instead look at employment tax holistically, and to address the core issues for business that crop up as a result of rapid change. The government must support an employment tax system that adequately reflects the modern working world – and avoids placing significant additional cost burdens on business.

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    Engage in a holistic review of employment taxes, considering the recommendations made in the Taylor Review

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    Use the expertise of business to find solutions to emerging employment tax issues such as IR35

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    Create a clear roadmap for implementing employment tax reform to enable sound policy development

The true cost of IR35 reform

Consultation is key

When addressing employment taxes, clear and considered reform that provides certainty to business holds great importance.

  • 77% of CBI members surveyed worry that deeming contractors as ‘employed for tax purposes’ could cause employment rights challenges

  • 1 in 5 businesses are considering cutting the use of contractors completely

  • 87% of businesses believe that HMRC is not doing enough to support the transition

Our progress and impact

The CBI campaigns tirelessly on behalf of our members so that business creates prosperity for all.  Learn more about the work we do and the impact we are making on this issue.

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Support the change

  • Join the CBI

    Our members are our mandate, and the reason we’re the most influential business organisation in the UK. Join the voice of business, and help us campaign to create an employment tax system that suits a modern, flexible world of work.

  • Have your say

    Want to have your voice heard on employment tax issues? Join the CBI’s employment taxes working group, and help monitor and influence employment tax in the UK. Drive real change on the issues that matter to your business.

  • Make a difference

    This campaign is led by the CBI’s Tax and Regulation team. Contact Annie Gascoyne, Director of Economic Policy, to find out about the change UK business urgently needs and how you can support it.