Tackling the hidden economy with Conditionality – summary of responses

22 March 2017

The consultation had discussed the principle of conditionality, which would involve making access to licences or services needed to trade conditional upon tax registration. It explored how conditionality could reduce activity in the hidden economy.

The summary of responses lists the further steps needed which will see:

  • Government work collaboratively with a range of stakeholders in order to develop further policy proposals on conditionality.
  • This will include work with providers of licences and services, as well as businesses, individuals and their representatives to identify the sectors in which conditionality could be most effective.
  • The government will aim to identify an approach which has the maximum positive effect upon those operating in the hidden economy, whilst minimising burdens upon compliant customers, licensing bodies and service providers.
  • Any legislation to implement conditionality will be preceded by further policy development, testing and consultation with those likely to be affected.