The Chancellor's 2007budget changed the way former managed service companies can operate. It removed any opportunity for such companies to control or influence the financial affairs of Contractors.
Some have reverted to their original business of providing accountancy services and continue to provide tax advice to limited company contractors who may still comply within IR35 tax rules.
Other service providers have suspended their plans to create personal service companies or maintain managed services for Contractors as it is almost impossible to deliver a service which does not control or influence their clients' bank accounts.
There seems to be some confusion within the sector as to what type of service is acceptable to HMRC but with ATSCo's support it appears that HMRC has taken a big step towards an accreditation scheme and they will now recognise companies who have been formally audited by approved firms. This will also give Recruiters confidence to use such firms - removing the risk of debt transfer.
Umbrella Companies
This type of company is acceptable to HMRC and delivers a payroll and expenses facility for Contractors who become employees of the umbrella company.
Insurance Services for Service Providers Post April 2007
Manson Insurance has been working with Insurers to provide bespoke insurance packages for umbrella service providers including:-
Other Insurances Applicable
Payroll Service Business
Where companies provide a payroll service to CIS cardholders, or other self-employed works, Manson Insurance can help.
We have already arranged a number of block policies for such self-employed workers for Public Liability and Personal Accident at very competitive rates.
To request futher information, require a visit to discuss your company's insurance needs or to contact one of our advisors, please click here.