§ 21. Mr. BrookeTo ask the Secretary of State for Trade and Industry by what means he monitors whether the UK's international competitiveness is adversely affected by the working of IR35. [120525]
§ Ms HewittWe are committed to ensuring a fair tax system. It is clearly unfair that someone using a personal service company and carrying out the job of an employee has been able to enjoy a big tax and NICs advantage over other employees. Avoidance through service companies placed a burden on other tax and NIC payers and damaged the UK's competitiveness.
The IR35 proposals enable the use of personal service companies to continue but without the previous unfair scope for avoiding payment of Tax and NICs.