In 1997 Dawn Primarolo introduced, what many in the IT Contracting industry felt, was flawed regulations for so-called “service companies”.
This was at the same time that federal authorities were repealing similar legislation in the USA. A MASSIVE movement of technical talent left the UK and for the remaining IT Contractors, they had the burden of unjust “meddling” into their affairs.
Now the Office of Tax Simplification have announced they have looked at this regime and suggested changes to the Chancellor http://www.theyworkforyou.com/wms/?id=2011-03-10a.71WS.3 and http://hm-treasury.gov.uk/ots_press_10032011.htm
Hopefully, this woefully inept piece of tax burden will be removed in the Budget on 23 March 2011 – http://hm-treasury.gov.uk/2011budget.htm