TAX

Taxman gets rap on knuckles over treatment of freelancers

Workers who have been aggressively targeted for suspected tax avoidance may take heart from a report this week
Lucy Harper, 36, has been told that she owes £37,000 in unpaid tax
Lucy Harper, 36, has been told that she owes £37,000 in unpaid tax

Freelance workers may have been thrown a lifeline after the taxman was criticised for treating them too harshly.

The economic affairs committee in the House of Lords this week said that HM Revenue & Customs (HMRC) was overusing “disproportionate” powers that allow it to demand swift payments of unpaid tax from those it suspects of tax avoidance. Those suspected have no right to appeal to a tribunal.

Members said that accelerated payment notices (APNs) and follower notices were being aimed unfairly at lower and middle-income freelancers such as IT workers and NHS nurses, rather than the promoters of tax avoidance schemes.

Lord Forsyth of Drumlean, chairman of the committee, said the balance of power had “tipped too far in favour of HMRC and against the