Personal services companies and IR35 – Budget updateWednesday, March 21st, 2012
The Government is bringing forward a package of measures to tighten up on avoidance through the use of personal service companies and to make the existing IR35 legislation easier to understand. This will include HMRC
- strengthening specialist compliance teams,
- simplifying the way IR35 is administered, and
- consulting on proposals which would require office holders/controlling persons who are integral to the running of an organisation, to have PAYE and NICs deducted at source.
This could have a major impact on employers and the way they deal with the issue of employment/self-employment.