A new specialist team has been created within HMRC to tackle the exploitation of freelance workers employed on a “full time” basis at businesses in the UK.

The team will examine and, if necessary, fine businesses with a view to deterring them from using freelancers in full time roles without the associated benefits, in order to obtain a tax advantage.

Businesses found in breach of existing laws may be fined up to 100% of the tax they would otherwise have owed.