Following the conclusions announced recently by a leading law firm that the forthcoming "Onshore employment intermediaries: false employment legislation" proposed in the Finance Bill 2014, will not affect personal service companies due to the way they normally pay their contractors
(salary, dividends, loan repayments, or loans), the Institute of Chartered Accountants Tax Faculty reported earlier this week that HMRC has clarified that "the legislation will not apply to personal service companies
Meanwhile, the Lords Committee into the role of personal service companies has heard from various parties, making the key points that tax is not the main or sole reason that the majority of contractors
choose to work through them and also that it is impossible to separate the definition of "normal" limited company
, from that of a PSC, with one shareholder or director - when is a small business a small business and when is it a freelance worker?
The debate goes on...