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Personal Attention

17 February 2005 / Kevin Miller
Issue: 3995 / Categories: Comment & Analysis , IR35 , Companies , Employees , Income Tax
KEVIN MILLER looks at Inland Revenue targets issues for composite and managed service companies.

THE INLAND REVENUE has two dedicated teams in Sheffield and Taunton targeting the growing numbers of composite and managed service companies that have taken form especially since the introduction of the personal service company intermediaries tax legislation (IR35) in 2000. These companies cater for the growing numbers of contract workers who have to operate through a limited company if they want to obtain work via agencies.

The Revenue teams are beginning to make themselves felt in the marketplace as they get to grips with the ways that composite and managed service companies operate and a growing number of these companies are being investigated.

Composite companies

A composite company is a personal service company where a number of workers become shareholders and employees. The company is promoted by a separate organisation that provides the necessary administration e.g. invoicing payroll expense payments and usually provides the...

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