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Finance Bill

The hon. Gentleman said that individuals could be exploited when they did not realise that they were part of a managed service company. Unfortunately, trying to deal with those problems creates a set of further problems. The Institute of Chartered Accountants said that it had seen correspondence from managed service companies to their customers offering them an alternative service, and advising them to set themselves up as personal service companies of which they would be sole shareholders. They would then be asked to certify whether they were within the rules of IR35. If people do not know that they are part of a managed service company, they will be vulnerable when asked to self-certify on something of which they are not adequately aware. Dealing with managed service companies might create a further problem.