The House of Lords Select Committee on Personal Service Companies will publish its report on Monday 7 April 2014, the first day of the new tax year.
The use of personal service companies by freelancers and contractors is increasing and has become a large feature of the UK's flexible workforce. The possibility of reducing tax and National Insurance bills can motivate individuals to incorporate, and the Government's anti-avoidance legislation (often referred to as IR35) was the focus of much discussion.
The Committee also turned their attention to the implications for the lower-paid and the use of off-payroll engagements in the public sector; two areas linked to the use of personal service companies.
The Committee was appointed to consider the consequences of the use of personal service companies for tax collection and has heard from a number of bodies across both the public and private sectors. The Committee began taking evidence in November 2013 and witnesses have included:
- Her Majesty's Revenue and Customs
- Office of Tax Simplification
- Department of Health
- Low Incomes Tax Reforms Group
- National Association of Schoolmasters Union of Women Teachers
- Institute of Directors
- Confederation of British Industry
- Professional Contractors Group
- Federation of Small Businesses
- Local Government Association
- Oil and Gas UK
- Amey plc
- British Telecom