Moving your company away from a MSC
Birth of a new Umbrella generation. Better or worse?
Since April 2016 new tax rules restrict the expenses that can be claimed by Umbrella workers, with the consequential loss of tax relief reducing take home pay. These new rules changed the landscape. Many Umbrella workers wanted to protect their earnings and Umbrella providers wanted to retain their employees (and margins). New models were born as the Umbrella workers and Umbrella providers sought the best solutions.
So if you were an Umbrella worker in April 2016, where did you end up? In this ebrief we consider the issues Umbrella workers experience when they switch or are switched into a model they may not understand. We compare hybrid models and MSCs with familiar PSCs. Specifically:
- Defining a Managed Service Company (MSC)
- How can you tell if you are using a MSC?
- Risks and consequences of being involved in a MSC
- Differences when running a PSC (Limited Company)
- Does leaving an Umbrella make HMRC suspicious?
- Tax avoidance schemes – the facts
Don’t be left using a model that doesn’t give you everything you need to contract successfully, whilst costing you more in the long run. Download our ebrief for free today.