Leading contractor accountant confirmed as "not caught" by MSC legislation

Published on Jan 10, 2008 |

One of the UK's leading contractor accountancy firms, SJD Accountancy, says it has become the first accountancy company to be confirmed by KPMG as not being caught by the controversial Managed Service Company legislation.

A Managed Service Company (MSC) is, in the simplest terms, one which literally takes over the running of a contractor's or freelancer's limited company. By grouping contractors together and offering a 'managed service' scheme, numerous tax laws can be bypassed, including IR35. A number of MSCs sprang up a few years ago when the owners of these companies realised the potential benefits but the practice has never been condoned by professional accountancy bodies and has always been viewed as an attempt to take advantage of HMRC tax loopholes.

Last year the Government closed this loophole, effectively ruling out the use of Managed Service Companies and affecting more than 200,000 contractors in the process, as well as placing uncertainty in the minds of recruitment
companies. If these recruiters were found to have recommended working practices which were later deemed to contravene the new legislation, then they could potentially become liable for any contractors' back taxes, penalties or
debts.

SJD say they are the only such firm in the country to be reviewed and found to be compliant.

MD Simon Dolan said:

"I am delighted that both SJD's and ContractorUmbrella's businesses have received KPMG's accreditation. I feel sure that a very large burden will be lifted from recruiters who are looking to recommend bona fide accountancy firms and for contractors who are looking for a safe pair of hands to manage their tax affairs."

Contractor Services

Income Protection (PHI) and Contractor Mortgages - Specialist quotes
Free Umbrella Company - Save over £1400 p.a. on fees with Springboard
Contract Experts - ClearSky Accounting on 08000 325 326
Qdos - IR35 experts - Providers of low cost insurances
Parasol - the UK's favourite umbrella company
Free IR35 & Tax Review - Call ICS on 0800 195 3750
K & B Accountancy Group- Fixed fee accounting for contractors only £75pm
Cloud 9 Group - Umbrella Solutions only £19.95 per week
Umbrella4Contractors - Low fees, same day setup
Professional Indemnity Insurance - Contractor PI cover


Back to top
Search Contract Eye

 Our Partners
Parasol PAYE umbrella
Award winning service
Contractor Accountants
Full Service, Fixed Fee!
Free Umbrella Company
Save over £1400 p.a.
ClearSky Accounting
From £95 per month
Fixed Fee Accounting
Contractor Specialists
Umbrella4Contractors
Low fees, same day setup
Free IR35 / Tax Review
Call ICS - 0800 195 3750
Umbrella Co. Solutions
Only £19.95 per week
PRINCE2, MSP & M_o_R
Maven Training

 Contractor Insurance
Hiscox Office Insurance
Instant Online Quote
IR35 Insurance
Essential Protection
Income Protection
If you're unable to work



 Contractor Services
Compare Insurance Deals
PI & Business Liability
Contractor Ltd Company
Instant online formation
IT Contractor Pensions
The last great tax break
Private Medical Insurance
Tailored contractor cover
IT Contractor Mortgages
Based on hourly rates!
Protect Your Income
Get a PHI quote
IT Contractor Life Cover
Protect your dependants
Critical Illness Cover
Comprehensive cover



 IT Contractor Guides
Contractor Umbrella
Umbrella Co. Guides
Limited Companies
IT Contractor Guide
Dragonfly IR35
Important IR35 case
Value Added Tax
Concise VAT Guide
Security Clearance
Is it discriminatory?
Corporation Tax
IT Contractor Guide
IT Contractor Mortgages
How to get the best rates
Contractor Insurance
Are you covered?
Umbrella Companies
Links to key providers
Umbrella or Ltd Co?
Which company structure?

Stay up to date with our RSS feed | Terms of Use | About Us | Directory | Site Map | MSC Legislation | Income Shifting

Copyright © 2006-9, Contract Eye Limited, All Rights Reserved.

UK Contractor Guides, Contractor Accountants, Umbrella Companies, IR35, Insurance, Contractor Mortgages
Design by Blue Egg Web Agency