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HMRC Consultation: Personal service companies in the public sector

2nd June 2016

One of the announcements from the Budget earlier this year was that Public Bodies will be forced to take responsibility for operating a separate payroll (and paying the resulting Income Tax and National Insurance) on payments made to personal service companies. HMRC have recently published a consultation paper asking a number of questions regarding the proposed changes to the legislation.

The consultation considers the reforms to be made to the intermediaries legislation, also known as the “IR35” rules. The intention is to ensure a tighter level of effective compliance within the public sector. The consultation paper seeks the views of interested parties in respect of the new legislation and the procedures to be adopted to see whether an intermediary is within scope of the  proposed changes to the rules.

haysmacintyre will be making a submission to the consultation, if you are interested in helping us with our response please contact Nick Bustin, Director of Employment Tax, on 020 7969 5578 or via email, or your usual haysmacintyre contact.