Mr. RussellBrown: To ask the Chancellor of the Exchequer if he will make a statement on the tax position of service company workers overseas. [122226]
§ Dawn PrimaroloMany other countries have rules that are similar to IR35 which discourage the use of service companies to disguise employment. Others are developing such rules at the present time.
In some countries, a worker will be worse off than if they had stayed in the UK and fallen within IR35. These include Norway, Belgium and Germany.
In the US, a service company worker may achieve a marginally higher level of take home pay, but this will be eroded by the additional expense of items such as health care insurance.
In the Netherlands, a service company worker will be substantially worse off than in the UK. The Netherlands do have a generous tax regime for IT workers, but this regime applies only to those who work properly as employees and not to those who work through service companies.