| Danbro has created a useful guide to help | | | | Damian Broughton from Danbro says: "As an |
| contractors and temporary workers affected by | | | | accountancy practice, we are exempt from MSC |
| changes introduced in Gordon Brown's March | | | | legislation and offer a range of services that can |
| Budget. | | | | help contractors to operate in the most |
| We have produced the Guide to Managed Service | | | | tax-efficient way. These include: |
| Companies Legislation for both recruitment | | | | - Umbrella company - a service fully approved by |
| agencies and clients who may operate through a | | | | the Inland Revenue |
| Managed Service Company (MSC). | | | | - Limited company options tailored to each |
| MSCs typically provide administrative services, | | | | individual clients needs. |
| produce invoices and receive payment for work | | | | "This new legislation is complex and contractors |
| carried out. Prior to the Budget, they paid | | | | are strongly recommended to seek the advice of |
| contractors a small salary, with the rest in | | | | a qualified, professional accountant or financial |
| dividend payments, which reduced their tax bill | | | | adviser to make sure they do not foul of the |
| and National Insurance contributions (NICs). | | | | rules." |
| The MSCs must now operate Pay As You Earn | | | | Copies of the guide are available by calling Danbro |
| (PAYE) and deduct tax and, from 6 August, Class | | | | on 01253 600140 or e-mailing enquiries@danbro.co. |
| 1 NICs from income earned by its contractors. | | | | |