Managed Service Company (MSC) FAQ's
Update from Managed Service Companies Guidance published by HMRC on 10th July 2007:
“If umbrella companies workers are treated as employees of the umbrella company and all payments to workers as employment income which is paid in the form of salary and allowable expenses. It follows therefore that what the worker has received from the umbrella company is the same as they would have received from any other company through which the worker operated and which treated all payments as employment income. Consequently the third condition is not met and the umbrella company does not meet the definition of a Managed Service Company.”
Despite what you may have read or been told by some providers - there is no problem what so ever with working through your own Limited Company under the new MSC legislation. Please visit here for more information.
We have received a number of compliance questionnaires from the agencies that we deal with concerning the new MSC legislation and the associated debt transfer legislation. With that in mind we have summed up for you below our credentials.
ContractorUmbrella Ltd is sister company to SJD Accountancy, the largest and most trusted accountant for contractors and freelancers.
- Are you qualified and registered accountants?
Yes – we are a multi discipline firm with partners qualified with the following bodies – ACA, ACCA, ATII, ATT, CIMA. SJD itself is registered with the Chartered Institute of Taxation.
- Do you provide tax advice?
Yes. Plus all clients get ‘Contractor Guides’ to help them work more efficiently as a contractor. Please follow the links if you feel these will be useful for your contractors – Umbrella Guide or Ltd Company Guide.
- Can you help contractors to set up a personal limited company?
Yes. SJD manages over 5,500 Limited Companies owned by contractors and freelancers. They are also the only National firm of Accountants recommended by the Professional Contractors Group.
- Do you provide an Umbrella solution?
Yes, an award winning service.
- Does your Umbrella Company act as employer to their contractors?
Yes, payments are made through PAYE only.
- Is your margin fixed?
Yes. We do not retain a percentage of your earnings.
- Can you advise on IR35 and offer contract reviews?
Yes, SJD is an industry leader in this field.
- We have candidates who need PI insurance can you help?
Yes, we have specially negotiated rates with a market leader.
- Do you operate, or have you ever operated an MSC?
- Do you or have you ever offered overseas or offshore tax avoidance schemes?
Please do not hesitate to contact us if you would like to talk over any technical aspects of the MSC legislation. We are also happy to sign anything to confirm the above statements.