Lords begins new Personal Service Companies inquiry with HMRC

21 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

At 4.05 pm, the Committee will hear from:

  • Rowena Fletcher, Deputy Director with special responsibility for the Employment Status Team; and
  • Robin Wythes, Team Leader of the Employment Status Team.

The Committee will quiz the HMRC officials on 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.

Following on, at 5.00 pm, the Committee will have the opportunity to question John Whiting, Director of the Office of Tax Simplification (OTS). It will ask Mr Whiting 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; 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.

The evidence sessions will take place on Monday 25 November at 4.05 pm in Committee Room 4.

The session will be webcast at www.parliamentlive.tv and is also open to the public. Journalists wishing to attend should go to Parliament’s Cromwell Green Entrance and should allow time for security screening.

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