H M Treasury has published a consultation on whether entitlement to UK Personal Allowances should be restricted for migrant workers and other non-UK residents. The NFU are interested in finding out what the possible imact of this could be on the seasonal labour market.
The consultation sets out why the government feels it is not currently receiving a fair share of income tax from non-UK residents.
Currently both UK citizens and European Economic Area citizens are entitled to a UK personal allowance enabling them to earn up to £10,000 in the UK before paying UK income tax.
The consultation suggests this results in many non-UK residents paying no UK income tax on their UK income with all of the tax on both their UK and overseas income then being received by their country of residence.
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It seeks views on this issue and how the government could address it, for example by restricting the availability of personal allowances for migrant workers and other non-UK resident individuals. It suggests that if this happened the amount of UK income tax paid by many non-UK resident seasonal workers would increase.
In seeking to address this issue the government has committed to the following principles:
- Fairness: the effect of the UK Personal Allowance must be fair for all UK taxpayers and the Exchequer
- Simplicity: any change must be as simple as possible for those people and businesses who would be affected to understand and implement
- Competitiveness: any restriction to the UK Personal Allowance must not undermine the competitiveness of the UK as an international destination for work and investment
The NFU is interested in hearing from members regarding this consultation. We would particularly welcome views or evidence on the following points:
- The suggested unfairness of the current position
- Whether or not the potential changes set out inthe consultationmeet the high level principlesthe government has committed to
- If any of the suggestions mayresult in aparticular group, such asthose on lower earnings or from a particular country, being discriminated against
- If any of the proposed changes would have an adverse impact on the agricultural industry.