Personal Service Companies

Part of Oral Answers to Questions — Treasury – in the House of Commons at 12:00 am on 25th January 2001.

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Photo of Dawn Primarolo Dawn Primarolo Paymaster General (HM Treasury) 12:00 am, 25th January 2001

No, I do not agree with the hon. Gentleman's proposition. IR35 is not driving IT workers overseas and there is no evidence to support that allegation. The tax system encourages entrepreneurial activity in the United Kingdom. The hon. Gentleman needs to tell us whether he would continue to allow that mechanism to exist in the tax system so that some people could pay less tax than others when they are in exactly the same position.