On 16 March 2013, the Government announced that it will introduce measures to ensure that income tax and NICS cannot be avoided using offshore employment intermediaries. The government intends to ensure that employment taxes are payable for all UK employees, regardless of where the payroll is based and to provide HMRC the powers it requires to collect these taxes.

HMRC is due to publish a consultation in May 2013 and legislation will be included in the Finance Bill 2014, with an anticipated commencement date of 1 April 2014.

For more details see: HM Treasury: Government announces new measures to block tax avoidance involving offshore employment intermediaries and Written ministerial statement: Tax avoidance.