An extra £400m could be raised in tax under a plan by ministers to crack down on a loophole exploited by as many as 100,000 people. Ministers are understood to be examining whether to severely tighten the rules of personal service companies before George Osborne’s autumn statement on 25 November.
Well, maybe, why not in fact?
We could always hope that it applies to LLPs that get annual grants, can’t we?
The government acknowledges that a small number of professionals will still legitimately use personal service companies. Some IT workers might work for a company for a short period or they might work for multiple companies at the same time. In that case they would not be seen as an employee. Builders doing one job on a private house would be exempt.
But there are understood to be examples of professionals such as lawyers working for one company for a short period of two months. Ministers believe that in these circumstances they should be counted as employees and should pay income tax.
Two sodding months is now the definition of an employee?