The House of Lords is to investigate the use of Personal Service Companies (PSC) for tax collection and has set up a select committee which will begin taking evidence on the issues next week report Harris & Co accountants Northampton who specialise in forward thinking accountancy services for Northampton businesses.
The chairman of the select committee, Baroness Noakes, said:
‘This inquiry will form a wide-ranging review of the use of PSCs. We will consider extent to which Personal Companies are used and the implications for tax, National Insurance and other wider issues, both from the point of view of workers and those who engage them.’
On 25 November the select committee will be hearing evidence from two HMRC officials: Rowena Fletcher, who is deputy director with special responsibility for the employment status team, and Robin Wythes, team leader of the employment status team. John Whiting, director of the Office of Tax Simplification, will also be appearing before the committee.
The select committee says it will be looking at the extent to which PSCs are in use in both the private and public sector, including the issue of whether some individuals are forced into the use of a PSC as a prerequisite for being considered for work.
The review will also consider the effectiveness and efficiency of the intermediaries legislation which was first introduced in 2000, and look at whether more guidance and advice is needed to aid individuals in judging the status of business transactions for themselves, and whether HMRC should be allocated more resources for compliance work in this area.
Committee hearings of oral evidence will be held from November 2013 to January 2014