Lee Sharpe looks at using companies, as the tax legislation changes to combat perceived abuse.
This article will take a tax-centric look at the basic principles behind using a company, and whether or not they are still worth considering.
Readers will be aware that the government has, over the last few years, become concerned about the level of ‘tax-motivated incorporations’ and, in particular, the potential loss of primary and secondary National Insurance contributions (NICs) revenues where individuals move from employment to providing their services through a corporate intermediary or ‘personal service company’ (PSC).
Background to IR35/intermediaries legislation
PSCs first came under the spotlight in 1999 with Tax Bulletin IR35 (‘Countering Avoidance in
