MSC Legislation - IT Contractors
There is much confusion over the introduction of the MSC legislation that has impacted on the entire IT Contractor world. IT Contractors have been badgered into forming their own Limited Company (PSC - personal service company) or to be paid PAYE via their agency or other company as an employee.
However, this simply does not take into account the unique and independent status of many ITContractors in the U.K. - the legislation is unfair, restrictive and hastily produced.
There is the third option, however, and is based upon the HMRC guidelines for what they are attacking. HMRC are concerned about the 'disguised employment' of Contractors - and the genuinely independent contractor should not be made to suffer for this wide sweeping legislation.
In their press release HM Treasury - Tackling Managed Service Companies state that
'workers in MSCs are almost invariably not in business on their own account and the underlying nature of the contracts in which they are involved is one of employment.'
If you are a self employed contractor - direct to client - then please contact us for further information!
Please email - sales@thetaxadvantage.co.uk for a FREE consultation
Or call now: 0844 415 4832