HC Deb 08 June 1999 vol 332 cc286-7W
Dr. Cable

To ask the Chancellor of the Exchequer

(1) if information on certified agencies and other clients of personal service companies will be available through EDI to enable recruitment consultancies and others to check on a company's status; [86188]

(2) what requirements to report to the Inland Revenue will be placed on companies utilising personal service companies (a) via a certified agency and (b) independent of a certified agency; [86177]

(3) if the tax affairs of certified agencies for personal service companies will be handled through a central office; [86179]

(4) when the Inland Revenue plans to withdraw Decision 4 of February 1992 which makes it unnecessary for an agency to operate PAYE when a limited company is contracting with an agency to provide personal services; [86185]

(5) how self-certification of public service companies will apply in the case of companies with two streams of income, one within and the other outside the new rules; [86180]

(6) how the Inland Revenue will define costs which are incidental to the supply of materials and equipment in contracts for personal service companies; [86178]

(7) if non-certified agencies providing personal services will be given a tax code; [86183]

(8) how the retained profits of personal service companies will be treated by the Inland Revenue after April 2000; [86181]

(9) for what reasons Inland Revenue examples of the impact of tax changes affecting personal service companies do not include reference to agency workers; [86186]

(10) for what period directors of personal service companies who default on their certifications will be banned from self-certification; [86189]

(11) how legitimate expenses for personal service companies in respect of (i) professional indemnity and public liability insurance and (ii) training costs, will be handled for tax purposes. [86184]

Dawn Primarolo

The rules will not be finalised until consultation on the proposals is complete. The Inland Revenue will meet with representative bodies in June and are considering written representations from individuals. I have asked the Inland Revenue to publish details of the new rules in as near final form as possible, along with comprehensive guidance on the application of the rules, at the earliest possible stage.

Dr. Cable

To ask the Chancellor of the Exchequer how VAT will be applied to non-certified agencies supplying personal services when they have paid income tax and national insurance. [86182]

Dawn Primarolo

The VAT position of non-certified agencies will not be affected by the Inland Revenue proposals. VAT will continue to be due on the full value of the supplies made by the agencies, including income tax and national insurance deducted by the client.