|Picture credit - The Mirror|
Deep in the budget paperwork is the following statement:
2.207 Personal service companies and IR35 – The Government will introduce a package of measures to tackle avoidance through the use of personal service companies and to make the IR35 legislation easier to understand for those who are genuinely in business. This will include: strengthening up specialist compliance teams to tackle avoidance of employment income; simplifying the way IR35 is administered; and subject to consultation, requiring office holders/controlling persons who are integral to the running of an organisation to have PAYE and NICs deducted at source by the organisation by which they are engaged. (Finance Bill 2013)
Welcome to the deduction of Tax and National Insurance under PAYE everyone. All those consultants who live miles away from Barnet; no more tax relief on your travel or accommodation costs so go back to Peterborough and let us employ local people. It looks like a level playing field is starting to arrive.