“HMRC has digital health businesses in its sights” by Matthew Sharp, Partner at Fieldfisher

Companies working in the sector should check workers’ employment status, warns Matthew Sharp.


After a pause in compliance activity during the Covid-19 pandemic, HMRC is ramping up its compliance and enforcement activities. One of the key focus areas for HMRC is ‘off-payroll compliance’ (i.e. whether people are being properly categorised as self-employed workers as opposed to employees).


This is relevant as self-employed workers generally pay lower amounts in income tax and National Insurance Contributions – so disguised employment leads to a lower tax yield for the Government.


And evidence suggests that HMRC is focusing its off-payroll compliance activities on the Pharma and Healthcare sector, including digital health businesses.

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