LORDS

Lords begin new Personal Service Companies inquiry with HMRC

25 November 2013

The new House of Lords Committee charged with investigating the consequences of the use of Personal Service Companies for tax collection will question representatives from Her Majesty’s Revenue and Customs (HMRC) on Monday 25 November in the first evidence session of its inquiry.

Witnesses

Committee Room 4, Palace of Westminster:

At 4pm:

  • Rowena Fletcher - Deputy Director with special responsibility for the Employment Status Team
  • Robin Wythes - Team Leader of the Employment Status Team

at 5pm:

  • John Whiting - Director of the Office of Tax Simplification (OTS)

Likely Questions

Questions the witnesses are likely to face include:

  • How many Personal Service Companies there currently are in the UK and how many are caught by the intermediaries legislation (IR35);
  • How long the average IR35 investigation takes and how many are awaiting Tribunals;
  • The feedback received since HMRC published its IR35 guidance in May 2012; and 
  • What evidence they have, if any, that people are abusing expenses rules through Personal Service Companies

Mr Whiting will also be questioned on issues including:

  • If he considers that HMRC has focussed its work on industries where the use of PSCs is most prevalent;
  • If the new framework implement by HMRC helps public sector workers employed through PCSs to know if they have paid the right amount of tax; and
  • Any other industries that use large numbers of PSCs which have yet to be identified and If the difference in rules on tax deductable expenses for employees and the self-employed has an impact on people’s compliance with the law

Further Information

Image: iStockphoto

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