HC Deb 10 March 1993 vol 220 cc571-2W
Mr. Purchase

To ask the Chancellor of the Exchequer what steps he(a) has taken and (b) proposes to take to reduce opportunity for tax avoidance by full-time employees through the payment of fees to private companies in lieu of salaries; and if he will make a statement.

Mr. Dorrell

I refer to the reply I gave to the hon. Member for Walsall, North (Mr. Winnick) on 5 March, at column341.

Mr. Purchase

To ask the Chancellor of the Exchequer what information he has as to the number of companies which are being used as vehicles for tax avoidance purposes for individuals who have their salaries paid through the companies; and if he will make a statement.

Mr. Gordon Prentice

To ask the Chancellor of the Exchequer what assessment the Inland Revenue has made of the number of single person service companies currently established primarily for the purpose of receiving fees in lieu of salaries where that person works full time for one organisation; and what plans he has to regulate these companies.

Mr. Dorrell

Aggregate information of the sort requested is not available centrally. But tax avoidance arrangements of all kinds are kept under review and action is taken as appropriate.

Mr. Purchase

To ask the Chancellor of the Exchequer what guidelines have been issued to the Inland Revenue on the handling of tax returns of individuals who opt to register as self-employed rather than as an employee of a company; and if he will make a statement.

Mr. Dorrell

Whether an individual is an employee or self-employed for a particular engagement is a question of fact and law. Inland Revenue staff receive guidance to help them deal with all aspects of tax returns.