Brexit & EconomyPoliticsPledge on service companies

Pledge on service companies

The government has reiterated that tax advisers are not caught by legislation targetting the providers of service companies

Speaking in debates on the finance bill, John Healey, financial secretary to
the Treasury, said: ‘Let me make this clear, even where this specific exclusion
does not apply, the purpose of the legislation is not to include within the
definition of an MSC provider accountants, tax advisers, lawyers and company
secretaries, who provide advice or other professional services to companies and
individual clients.’

Advisers have not been involved in the off-the-shelf company provision
either, he suggested.

‘Those parties are not in the business of promoting or facilitating the use
of companies to provide the services of individuals. Nor are they regarded as
involved with the company in the way that the legislation envisages.’

The Treasury is thought to be discussing with professional institutes the
precise definition of accountants for the purposes of the legislation.

The rules on managed service companies identify the companies by identifying
their providers. Service companies allow companies and individuals to minimise
tax and national insurance paid by operating through a company rather than a
direct employment relationship.

Related Articles

5 key takeaways from Theresa May’s Florence speech

Brexit 5 key takeaways from Theresa May’s Florence speech

3m Alia Shoaib, Reporter
UK at risk of Brexit talent brain-drain

People Practice UK at risk of Brexit talent brain-drain

3m Alia Shoaib, Reporter
Brexit essentials: this week's round-up

Politics Brexit essentials: this week's round-up

4m Alia Shoaib, Reporter
Government publishes post-Brexit customs arrangements policy paper

Politics Government publishes post-Brexit customs arrangements policy paper

4m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

4m Emma Smith, Managing Editor
Increased government spending partly offset by high tax revenue

Governance Increased government spending partly offset by high tax revenue

5m Alia Shoaib, Reporter
Less than a third of UK businesses have made formal Brexit plans

Politics Less than a third of UK businesses have made formal Brexit plans

5m Alia Shoaib, Reporter
Nicky Morgan elected Chair of the Treasury Committee

Politics Nicky Morgan elected Chair of the Treasury Committee

5m Alia Shoaib, Reporter