Our website is set to allow the use of cookies. For more information and to change settings click here. If you are happy with cookies please click "Continue" or simply continue browsing. Continue.

Employment Law

Legal guidance - compliance - software

Veale Wasborough Vizards , 12 AUG 2015

Taxation of consultants who provide services through a limited company

Taxation of consultants who provide services through a limited company
Charlotte Williams
Solicitor, Veale Wasbrough Vizards

In 2000, legislation (IR35) was introduced to tackle the avoidance of employment taxes by those who work through intermediaries, primarily their own company, often known as a Personal Service Company (PSC).

The number of people working through PSCs has continued to grow over recent years. The government estimates that there were around 265,000 PSCs in 2012-13, an increase of 65,000 on the previous year alone.

Following concerns that IR35 is not effective and often not complied with, HMRC has published a number of proposals to improve the current system. The proposals include limiting the scope of which engagements fall within IR35 and, more controversially, shifting the burden of compliance on to those engaging PSCs (in other words the companies that employ the consultants) to ensure that the correct amount of tax is paid.

HMRC is seeking comments on the proposals, or any additional suggestions, by the end of September 2015.

The consultation can be accessed here.

Social Media in the Workplace

A Handbook

This book is intended as a handbook for advisers to employers, providing an overview of the...

More Info from £65.00
Available in Company Law Online
Jordan Publishing Employment Law

Jordan Publishing Employment Law

"exceptional value for money in today's challenging legal environment" John Mitton, PG Legal

Available in Employment Law Online
Subscribe to our newsletters