What are the proposals?

In April 1999 the Inland Revenue issued an information pack setting out a basic mechanism for delivering the Chancellor's objective.

Modified proposals were published on 23 September 1999 in the Inland Revenue Press Release "Personal Services Provided Through Intermediaries - Preventing Avoidance, Preserving Flexibility".

The main changes were that the rules:

• Place responsibility for complying with the new rules on the service company or partnership, rather than on the client; and
• Use the existing tests used to determine the boundary between employment and self-employment for identifying contracts affected by the new rules.