December 2006 Pre-Budget Report Statement
7 December 2006
At a seminar hosted by Charterhouse Group International PLC this morning, Anne Redston discussed the PBR Consultation document "Talking Managed Service Companies" (MSCS) issued yesterday by HM Revenue & Customs.
Charterhouse hosted the breakfast seminar for recruitment companies and business partners at which Anne summarised the main points and her initial thoughts and in particular generated discussion on the possible impacts on the industry.
In her introduction Anne was at pains to explain that the document issued is only for consultation and is not yet law and that further points are likely to emerge. She also encouraged everyone involved to take the time to read, digest and make their comments to the Revenue before consultation closes in March 07.
Anne said that the proposed legislation will cover MSCs and composites and that if the new rules are adopted, those within MSCs will pay tax and NICs as if they are employees. Unpaid tax may also be transferred to third parties.
Sandra Robertson, Group Director of Operations at Charterhouse went on to welcome the document in terms of aiming for a level playing field within the industry, something that Charterhouse have been calling for directly with the Revenue. “We are committed to continuing to work within the Revenue guidelines to provide products and services to the recruitment industry,” she went on to reassure that, as with previous changes in legislation and procedures, Charterhouse will continue to work closely with their business partners and keep them updated.
There is no doubt that the document issued will create a lot of media coverage and some strong emotions but despite this there will still be a demand from both agencies, their end clients and contractors for company provisions. Charterhouse urge agencies to read the proposed legislation carefully and make informed choices when selecting their service provider.
Further information from:
Lisa Underwood – Head of IOM Sales & Marketing
Charterhouse Group International Limited
Bourne Concourse, Peel Street, Ramsey, Isle of Man, IM8 1JJ
Tel: 01624 818 360 Fax: 01624 818 515
Email:
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