§ 23. Mr. Sternasked the Chancellor of the Exchequer whether he has any plans to seek to introduce into the Taxes Acts a statutory definition of employment.
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§ Mr. MooreWe have no plans to introduce a special definition for tax purposes. Employment status is a matter of general law with wide implications beyond tax extending, for example, to national insurance contributions and benefits, employment protection and health and safety at work. The existing criteria laid down by the courts seek essentially to answer the question: is the individual in business on his own account? We believe that this is the right approach. To introduce a special definition for tax in place of existing law would only complicate matters and introduce fresh doubts. Where uncertainty now exists, inspectors of taxes are always willing to advise. The Inland Revenue will also shortly be publishing a leaflet explaining the detailed criteria adopted by the courts to help taxpayers understand the issues involved.