Re: FN-FORUM: Legal gubbins you need to follos when employing contractors

date posted 23rd November 2007 13:21


On 23 Nov 2007, at 14:08, Tony Crockford wrote:

>
>
> On 23 Nov 2007, at 14:02, steve wilson wrote:
>
>>
>> Well, the reason I put that in was because I am currently on a =20
>> contract with people4business, doing work for a client. I basically =20=

>> have to go via an umbreally company because they told me that new =20
>> legislation coming in net year dictates that any unpaid taxes by =20
>> the contractor is the responsibility of the contract agency.

I guess it's this your referring to:

=
http://www.pcg.org.uk/cms/index.php?option=3Dcom_content&task=3Dview&id=3D=
2372&Itemid=3D633

"In his Budget of 2007, Gordon Brown introduced a new tax treatment =20
for =93Managed Service Companies=94 (MSCs), of which there are several =20=

varieties, including composite companies and =93Managed Personal Service =
=20
Companies=94 (MPSCs). This measure aims to remove the tax advantage from =
=20
these companies by obliging them to pay contractors under the PAYE =20
regime.

This will leave contractors with two main options: running their own =20
limited company or using a PAYE Umbrella company (other solutions, =20
such as partnerships or becoming a sole trader, may also be available =20=

depending on circumstances). PCG offers both solutions:"