Personal service companies and the public sector

Abstract

Off-payroll workers in the UK, including personal service companies (PSCs), engaged by the public sector have been giving ‘assurance’ of their tax position to departments in the sector since 2012. Departments must be satisfied with the assurance. For PSCs this requires awareness of complex tax legislation (IR35), which is aimed at preventing tax avoidance. Costs may be incurred in attaining the necessary knowledge. This may bring into question costs incurred in protecting tax revenue. No similar obligation exists in the private sector.

Keywords:

• Intermediaries Legislation (IR35)
• off-payroll workers
• personal service companies (PSCs)
• tax avoidance

Additional information

Notes on contributors

Lynda Burkinshaw

Lynda Burkinshaw is a Lecturer in the Accounting and Finance Division at the University of Sheffield, UK.