There have also been suggestions that thousands of UK professionals, including lawyers, surveyors and estate agents, face a tax hit over a plan to clamp down on National Insurance exemptions for partnerships.
Treasury officials are said to believe that some firms are “disguising” employees as partners to avoid employer’s National Insurance contributions.
It is thought that partners could be stripped of their self-employed status unless they can prove they have put their own capital at risk in the business – a move that could affect many smaller law and accountancy firms as well as estate agents and surveyors.
Bill Dodwell, head of tax policy at Deloitte, said: “If they don’t deal with this properly then I do think it’s fairly damaging for the smaller part of Britain’s professional partnerships, which covers sectors like high-street accountancy firms or estate agents. They will potentially be asked for more tax.”
He added: “There is clear evidence that there is a gap here that has been exploited, and so I can understand why it’s right to shut that down. I just hope there isn’t collateral damage.”
An increase in the taxation of high street accountants……