Representatives from UK business organisations and unions are the latest group to give evidence to the House of Lords Committee investigating the tax implications of the use of Personal Service Companies (PSCs) and will appear before a hearing at the beginning of next week.

As well as evidence from senior tax expert Stephen Herring, head of taxation at the Institute of Directors, and Neil Carberry, director of employment and skills at the Confederation of British Industry, the committee will take views of unions (NASUWT and UCATT) and tax advice charity, TaxAid.

Peers are expected to question witnesses about whether people are being encouraged to use PSCs to save employers' national insurance contributions (NICs); whether or not they are aware of the pension and employment rights implications of such a move; whether or not there may be exploitation of workers' inability to grasp their tax position; who benefits most from the work of umbrella companies; and whether the government has achieved its aim, through IR35 regulations, of tackling tax and NICs avoidance.

In addition, the employers' organisations will also be asked about other issues such as the advantages of using workers through PSCs; why there is such a growth in one or two person companies; whether HMRC needs more resources to tackle tax avoidance, and how much companies should scrutinise the tax and NICs of those working through PSCs.

The evidence session will begin at 4pm on Monday 27 January. The committee is expecting to report in spring 2014.