Workers at risk over limited companies misuse
Growing numbers of workers risk being caught in anti tax avoidance legislation as they are being misled into using limited companies to get work, say tax campaigners.
The Low Incomes Tax Reform Group (LITRG) wants HMRC to pursue organisations that wrongly force people to use personal service companies (PSCs) to get work.
Earlier this year it emerged that the head of the Student Loans Company was paid through his own company and last month the BBC said it paid thousands of presenters through PSCs.
HMRC is consulting on proposals to tighten IR35 compliance by requiring organisations engaging controlling persons through PSCs to deduct income tax and NI from fees paid to their companies.