Following a report in the Financial Times last week that HM Revenue & Customs (HMRC) intends to adopt a more flexible approach to resolving tax disputes with business, the Freelancer & Contractor Services Association (FSCA) has warned of the continuing need for strong enforcement. 

Dave Hartnett, permanent secretary for tax at HMRC, told the FT: “HMRC is packed full of very intelligent people, but we are sometimes too black-and-white about the law.”

Responding to Harnett’s comments, Stuart Davis, chairman of the FCSA, says: “Non-compliance from service provider businesses undermines the credibility of the service provider sector and threatens the productivity of the UK’s flexible workers. I know that HMRC is trying to save money, but clarity and strong enforcement is needed to raise and maintain compliance standards.”