Simon Sweetman takes a look back at Budget 2012 and outlines six things the profession didn’t learn from the Chancellor's speech and published documentation.
2.207 Personal service companies and IR35 – The Government will introduce a package of measures to tackle avoidance through the use of personal service companies and to make the IR35 legislation easier to understand for those who are genuinely in business. This will include:
- strengthening up specialist compliance teams to tackle avoidance of employment income
- simplifying the way IR35 is administered
- subject to consultation, requiring office holders/controlling persons who are integral to the running of an organisation to have PAYE and NICs deducted at source by the organisation by which they are engaged. (Finance Bill 2013)
Now this has obviously been inspired by the student loans agency, etc. saga of payments to companies by government departments. What they should do is to make it clear to government departments that they cannot do this sort of thing.