Brave new world

The UK government has introduced significant changes in the Managed Service Companies (MSC) legislation, to prevent tax evasion by temporary workers, or contractors. Temporary employees were working in an inappropriate manner through non-compliant service providers and accessing the benefits of limited company employees. The improved MSC legislation has established three ways for engagement of freelance contractors, or workers. The three ways of seeking employment under the legislation, include on a PAYE base, through their recruitment agency, through an employment solution provider, and or operating their business as a limited company or sole trade. The appropriate solution for each contractor will depend on his, or her individual circumstances.