23.The temporary labour market is quick to react to any legislative changes and to find new ways of reducing income tax and NICs. Stakeholders have indicated that intermediaries involved in the facilitation of false self-employment may use avoidance vehicles and set up structures specifically designed to circumvent the legislation introduced by amending the Social Security (Categorisation of Earners) Regulations 1978 (as amended by the Social Security (Categorisation of Earners) (Amendment) Regulations 2014). This Act includes a targeted anti-avoidance rule (TAAR) to deter such avoidance focussing on:
the motive for setting up the arrangements – that they are set up with the motive of avoiding NICs under certain provisions themselves aimed at counteracting avoidance through false self-employment, intermediaries and structures involving overseas elements; and
what it achieves – does it result in less NICs being paid?