APPENDIX 3: CALL FOR EVIDENCE
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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