Importance of using a Qualified Accountant
A large number of employment service companies offering to set up Personal Service Companies (i.e. Limited companies) or put you in a special scheme, are open to investigation by Inland Revenue under new legislation. These organizations are usually run by call center operatives and not qualified accountants. They are likely to manage hundreds perhaps thousands of Limited Companies in which they do not cater for each clients specific needs.
It is also likely that they are or could be caught by the MSC legislation.
What is the MSC LEGISLATION, and how it can affect YOU?
In simplest terms it boils down to ‘control’. Do you as the contractor; control the company finances and general company management? i.e. – Are you a company director, and do you have full control over the company bank account? If not, you’re operating through a MSC. This as we understand it, has adverse implications for you as an individual if you have your own Limited company.
- You will be taxed as an employee under the MSC regime thereafter. There will be no tax relief on subsistence and travel to work expenses, and you will no longer be able to distribute any company profits as dividends.
- Inland Revenue can investigate back as far as seven years, to assess how much, if any, tax you have avoided, in which you will be legally responsible to pay back (which over a long period of time, can be a substantial amount).
For further details, please contact Danbro for Umbrella Service: 01253 600141, General Enquiries: 01253 600140, London Office: 020 7836 8400 or email enquiries@danbro.co.uk or send an enquiry.
