Isle of Man Personal Service Companies Consultation
In the Isle of Man the Income Tax Division on behalf of The Treasury have issued a consultation document with the aim of amending their current legislation in respect of PSC's (Personal Service Companies).
The notification is available at: PSC Consultation
The consultation document makes it clear that following a statement from the treasury minister the Isle of Man Government intend to make it clearer as to what type of income will be taxed as if a person was employed. It states that at the moment two people could be performing the same role but one could pay much less tax and national insurance than the other.
In the UK the taxation of PSC's is dictated by IR35 which is often criticised for being too subjective and not clear. HMRC have issued an IR35 Business Test but this too has been criticised for implying that the majority of PSC's will score a High or Medium Risk of being subject to an IR35 review.
If you are considering working through a PSC ( Personal Service Company) please call PayMatters on 0800 121 6513.