Are you at risk?
At last, the awaited draft legislation regarding transfer of third party debt has now been released and is available on the Treasury website.
There is bound to be a great deal of press coverage and lobbying on this issue, as in very basic terms it could leave a recruitment agency or it’s Directors liable for PAYE and NIC debts incurred by a contractor, whilst using a Managed Service Company.
The fact is that it is unlikely to be changed or not enacted in the 07 Budget.
This sends a clear message to the recruitment industry that the choice of service providers is a decision, which should be taken very seriously.
The options for recruiters are simple:
- Keep all temporary workers employed and on your own payroll with all the associated responsibilities and costs;
- Maintain your commerciality by finding a supplier who:
- Runs Personal Service Companies and/or Umbrella structures, not Managed Service Companies
- Is robust enough to deal with any enquiry from HMRC
- Is clearly there for the long haul and won’t ‘do a Phoenix’
For nearly 20 years, Charterhouse has been leading by example.
Our continued investment in research and development ensures we are always well placed to embrace change and can plan for the future. We offer an honest, reliable and accurate service, which will protect your reputation and allow you to focus on what you do best.
We look forward to working with you for the next 20 years.
Further information from:
Jennifer Monro, Marketing Manager
Charterhouse Group Ltd, Viking House, St Paul’s Square, Ramsey, UK, IM8 1GB
Tel: 01624 810 590 Fax: 01624 818 515
Email:
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