Pledge 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

Financial Secretary to the Treasury on cryptocurrency, Brexit and taxing the digital economy

Brexit Financial Secretary to the Treasury on cryptocurrency, Brexit and taxing the digital economy

2m Alia Shoaib, Reporter
HMRC’s refusal to raid top Tory donor Lycamobile to be investigated by MPs

Big Four HMRC’s refusal to raid top Tory donor Lycamobile to be investigated by MPs

2m Alia Shoaib, Reporter
Spring Statement 2018: Spring has sprung as chancellor finds his inner Tigger

Budget Spring Statement 2018: Spring has sprung as chancellor finds his inner Tigger

3m Emma Smith, Managing Editor
Spring Statement live feed

Budget Spring Statement live feed

3m Emma Smith, Managing Editor
Spring Statement 2018: 5 things to look out for

Brexit & Economy Spring Statement 2018: 5 things to look out for

3m Alia Shoaib, Reporter
Financial Secretary to the Treasury on Brexit, Spring Statement, Making Tax Digital and Carillion

Politics Financial Secretary to the Treasury on Brexit, Spring Statement, Making Tax Digital and Carillion

5m Emma Smith, Managing Editor
David Davis, Secretary of State for Exiting the European Union

Brexit & Economy David Davis, Secretary of State for Exiting the European Union

5m Alia Shoaib, Reporter
Philip Hammond, Chancellor of the Exchequer

Brexit & Economy Philip Hammond, Chancellor of the Exchequer

5m Alia Shoaib, Reporter