Media Release: Umbrella company Tarpon comment on MSC report

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FOLLOWING a Freedom of Information, it is being reported that the government is clamping down on tax avoidance arrangements through the use of Managed Service Companies (MSCs) legislation.

Says the report, legislation enables the government to recover tax and National Insurance contributions, and has caused investigations to treble in a short period of time. The news will no doubt be of interest to those working within both employment and financial industries, including UK umbrella companies such as Tarpon UK Ltd.

The company which submitted the Freedom of information requests to HM Revenue and Customs (HMRC)  was recruitment law specialist, Lawspeed. It says that the number of MSC tax avoidance arrangement enquiries had risen from 216 to 860, in the space of seven months.

Lawspeed make it clear that since there has been 142 debt transfer notices issued since April 2011, recruitment supply companies that work with service providers should be very cautious.

The MSCs legislation defines Managed Service Companies as any contractor company that pays its worker more than employed levels of income. If HMRC discovers recruiters using companies that chose to avoid tax and National Insurance, this may result in the outstanding tax and National Insurance debt being transferred to them.

A spokesperson from leading UK umbrella company, Tarpon, commented on the recent discovery:

“Although the number of investigations has risen dramatically, it’s vital that freelancers who are umbrella company employees do not panic. This news will only affect those who continue to avoid paying tax.

“Tarpon are proud to be 100 per cent compliant to all tax legislation, which ensures safety not only to contractors and freelancers, but also clients and agencies.

“Because there are numerous laws and regulations that must be followed when freelancing and contracting in the UK, we believe that it is up to umbrella companies to provide a genuine employment solution that helps create peace of mind for all employees.”

About Tarpon

Tarpon are an umbrella company specialising in contractor tax efficiency, enabling contractors to maximise their income and streamline their admin. Tarpon also provide contractors and agencies with professional advice surrounding potential employment law and tax challenges, including IR35 and AWR.

Discover what your take home pay will be with Tarpon by using our online umbrella company calculator. Or speak to one of our experts, by calling 0800 434 6402.

Contact:
Tarpon UK Ltd,
Unit 12,
Tivoli House,
Wigmore Park Centre,
Luton,
LU2 9XG,
tel: 0800 434 6402

Website: www.tarpon-uk.com

MEDIA RELEASE posted by QueryClick. You too can post media releases on www.allmediascotland.com. For more information, email here.

Contact: Darren Paterson

Email: darren@queryclick.com
Website: http://uk.queryclick.com/