Round three

KEY POINTS

• Problems for HMRC policing IR35
• Defining and redefining a managed service company
• Ensuring that the MSC legislation targets the right businesses
• Umbrella companies are specifically excluded

The tax and National Insurance benefits of working via a company are well known. However the disadvantage of incorporation is the administration which follows in its wake.

To avoid this problem a number of specialist providers market packaged companies. In return for a fee they eliminate bureaucracy liaise with agencies or clients calculate salary National Insurance PAYE profits corporation tax and dividends and pay the worker a mix of salary dividends and expenses often on a weekly basis. Sometimes these companies contain only one worker (managed service companies); some contain a number of unrelated workers and are known as composite...