Paymaster general says people employed by personal services companies By our parliamentary staff.
The government has signalled its intention to allow those hit by IR35 to claim travel costs in addition to the proposed five per cent deduction for business expenses. Paymaster general, Dawn Primarolo, pinpointed the 'concession' in a prolonged Finance Bill committee debate on the crackdown on personal services companies. Tory and Liberal Democrat amendments designed to thwart or delay changes to employed or self-employed status were rejected by the government or defeated on a vote. Primarolo insisted the IR35 drive is against the use of service companies to disguise employment and does not change existing case law used to determine whether someone is an employer, an employee or self-employed. She also denied claims made by IT consultants that the crackdown discriminates between small and large service companies, giving an advantage to the huge service firms that supply IT services to government departments and large corporations.