Simon Drake, Executive Interim Director at Penna (HR global services Group):
Penna welcomes the Government’s decision not to proceed with the proposed legislation on Controlling Persons as announced in today’s Autumn Statement.
The primary proposal of “The Taxation of Controlling Persons” would have required organisations using Executive Interim Managers to deduct the full equivalent income tax (PAYE) and National Insurance Contributions (NIC) directly, as if the Interim Manager were employed instead of operating as a business. As Penna commented during the consultation period in August, this proposal had the potential to at best significantly disrupt, and at worse seriously damage, a highly valued service that many organisations benefit from today.
Simon Drake, Executive Interim Director at Penna, said: “This clearly demonstrates a vote of confidence in the thorough consultation process that was undertaken and the considered response that was led by Penna and other IMA members and leading industry bodies like the IIM, PCG.”
The Government’s decision recognises the value that Executive Interims provide to businesses in the UK. When organisations suffer a loss in management and leadership or quickly require new leadership talent to help them improve or change, highly experienced Interim Managers are able to quickly step in to strengthen, or sometimes replace, an existing management team and implement change rapidly. The outcome is that the buying organisation is able to change quickly and improve. This helps to keep UK businesses and our public sector competitive at a time when remaining highly competitive and efficient is paramount.
