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Steer clear of personal service companies, say readers

THE PUBLIC SECTOR should not engage staff through personal service companies, according to Accountancy Age’s readers.

More than 100 votes were cast, with 76% voting against the practice, while 24% felt it is justified.

There was controversy last year when it emerged the BBC employed 25,000 people who did not pay tax at source. The figure included about 13,000 on-air television and radio ‘talent’, with a further 12,000 off-air staff. About 3,000 were paid via private companies which could potentially have allowed them to reduce their tax liabilities.

There was further controversy when 2,000 senior office holders of public bodies were revealed to be receiving payment off-payroll.

A new House of Lords Personal Service Companies Select Committee led by Baroness Noakes has been formed to investigate the issue.

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