Personal Service Companies - Select Committee on Personal Service Companies Contents


A Select Committee of the House of Lords, chaired by Baroness Noakes, is conducting an inquiry into the use of Personal Service Companies in the public and private sectors. The Committee seeks evidence from anyone with an interest.

Written evidence is sought by Tuesday 31 December 2013. Public hearings of oral evidence will be held from November 2013 to January 2014. The Committee aims to report to the House, with recommendations and conclusions, in March 2014. The report will receive a response from the Government, and may be debated in the House.

The Committee is undertaking a review of the use of Personal Service Companies. It intends to consider the implications for tax, National Insurance and wider issues both from the point of view of workers and their clients.

The Committee seeks evidence on any aspect of this topic, particularly on the following questions:

(1)  To what extent are Personal Service Companies being used for the provision of personal services to UK businesses?

(2)  What is your view of the effectiveness and efficiency of the intermediaries legislation, first introduced in 2000, in facilitating tax collection?

(3)  Should the current intermediaries legislation be reformed and if so, what would be the alternatives?

(4)  To what extent does the current IR35 legislation impose additional compliance burdens and administrative costs?

(5)  Are the current avenues of consultation on IR35 working and what more should be done to ensure that the Government listens to interested stakeholders?

(6)  Are HMRC's recent efforts in improving the administration of IR35 judgement cases working? Is more guidance and advice needed to aid individuals in judging the status of business transactions for themselves or should further resources be given to HMRC for compliance efforts?

(7)  Do businesses insist on the use of Personal Service Companies? If so, should responsibility be placed on them rather than the worker to decide whether a business transaction falls within IR35?

(8)  Are individuals forced into the use of a Personal Service Company as a prerequisite for being considered for work? If so, what can be done to ensure that the use of a Personal Service Company is appropriate for the individual?

(9)  To what extent are Personal Service Companies still used in the Public Sector? Should those engaged in public bodies and similar organisations be prevented from working through a Personal Service Company? If so, would the Public Sector experience difficulties in obtaining the skills and expertise that are needed?

(10)  What role do Umbrella companies play? To what extent are agencies encouraging individuals to enter into such structures?

(11)  Aside from the issues of Tax and National Insurance, what are the wider benefits and drawbacks for the individual of using a Personal Service Company?

You need not address all these questions.

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