Use Of Personal Service Companies

It is likely that HMRC will re-double its efforts to check that the rules are being followed.

The Public Accounts Committee (PAC) has criticised the BBC for having about 25,000 off-payroll contracts, e.g. using staff operating through personal service companies with the consequence of no PAYE tax deduction at source obligations for the BBC.

This is not really new news because there were newspaper headlines some years ago about the then chairman, John Birt, being paid via his personal service company.

The first point to note here is that no details have been given about the nature of the duties of the 25,000 people in question. It is likely that the majority are genuinely...

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