Managed service companies – picking up the pieces. By Rebecca Benneyworth

I know of two individuals of my acquiantance, who are in this situation. Now that the lucrative to and from 'home' mileage has been knocked on the head the MINI cooper suddely looks expensive to one of them who still thinks 'he' is (or should I say was) the company.
I try to steer well clear of individuals like these that want to be a 'company'.

At least HMRC are aware of the pretences being brandished by some MSC providers now that their source of easy money is disappearing. No wonder they have been trying to become accountants. See the link and in time they will all be troubled by HMRC enquiries given their previous publicity about being "proud" MSC providers. Clients should also take care about going into any "scheme or arrangement" with what were blatant MSC providers under a different guise in case they are tarnished for future enquiry work.

http://www.hmrc.gov.uk/employment-status/current.htm

regards
bill@wamstaxltd.com

i do not think this article is at all helpful especially when it supposedly written by an advisor. our duty is to offer advice to our client not express personal opinions on the ethics of clients activities etc...

i quote:-
"been one of the few readers who observed to themselves that “somebody” has already been paying to finance this extraordinary tax saving – me!"

RB is saying she supports the government, and therefore is not really interested in helping those affected by this dramatic tax change - her customers?

I could express the personal opinion that i abhor the abuse of our tax system by money-grubbing little creeps like Philip Green who EVADE tax to the £million by using offshore odious tax havens like Monaco to channel £m. through his wife whilst she lies on her massive yacht in the med. sticking 2 fingers up at us plebs paying UK taxes.

i could also quote from a more respected organ than mere me :-

"Douglas McWilliams, the centre's chief executive, says the lawful avoidance of tax by the wealthiest is no longer an irrelevance, but a growing burden on the majority who have no choice other than to pay up." etc.....zzzz

But of course that would be expressing a personal opinion which I should not do in these hallowed pages, so i will refrain, and stick to helping my clients pay a FAIR tax bill for a days work.

Will this posting last the night out?

Graham, yes I agree, contractor companies can be a very useful technique under new CIS to protect both contractors and subbies. You'll need to think about not falling foul of IR35, but I agree also with your subsequent comment that if you have looked at IR35 and conclude that you are OK, then clearly dividend would be more tax efficient. My comments relfected the fact that many of the workers caught up in this are actually teachers, nurses, local govt employees who to be frank probably haven't got a snowball's chance of complying with IR35 - hence my comments.

Malcolm, I'm sorry you didn't find the piece useful. I was really trying to give advisers who have not met these arrangements a "heads up" on what to watch out for when the phone starts ringing. I have a lot of sympathy for those tangled up in this - and I have personally dealt with a few now, none of whom had any idea what they were getting into, and to be honest any tax savings they generated went in fees to MSC providers anyway. Many are in a mess, and in the absence of careful advice could end up in a worse mess with personal liability for tax debts they do not understand. Yes, I do agree with the logic in terminating these schemes - they have the potential to seriously compromise tax revenues, and often not to the benefit of the workers concerned. That does not alter the advice I give to clients, which is to give good practical and pragmatic advice about their position, and make suggestions about the best way forward within the law.