Lords Debates Personal Service Companies Report
On Tuesday 17 June, members of the House including a former Director of the Bank of England and the Chair of OFSTED, will debate the report on personal service companies, published on 7 April 2014.
The Committee's report found that Her Majesty's Revenue and Customs (HMRC) need to do far more to demonstrate that they are aware of the true cost of the ‘IR35' legislation, the tax rules that can apply to personal service companies. It also found that HMRC should also take steps to provide better, clearer and impartial guidance to those affected by the provisions.
The Committee also expressed concern that the exploitation of low-paid workers may be a phenomenon associated with the use of personal service companies and was something that needed to be thoroughly assessed by the Low Pay Commission, with a review of the use of personal service and umbrella companies by the lower-paid, and of the implications for pay, employment rights and statutory entitlements, such as holiday and sick pay.
Former Chairman of the Committee and Ofcom's new Deputy Chairman, Baroness Noakes, will open the debate.
Others expected to take part in the debate include:
- Lord Empey, Vice President of the Institute of Export and former Committee member;
- Lord Myners, former Financial Services Secretary and Director of the Bank of England;
- Lord Higgins, Governor of the Institute of Economic and Social Research and former Committee member;
- Baroness Morgan of Huyton, Chair of OFSTED and former Committee member;
- Lord Stewartby, former Economic Secretary and Committee member; and
- Lord Davidson of Glen Clova, Shadow Spokesperson for the Treasury.
Lord Palmer of Childs Hill, Baroness Bakewell of Hardington Mandeville, and Lord Hope of Craighead, all former Committee members, are also expected to take part.
Lord Newby will respond on behalf of the Government.
