Under the Managed Service Companies (MSC) Legislation introduced in 2007, directors and agencies can be liable for the tax debt of contractors where they are dealing with umbrella companies or other service providers in certain circumstances. All service providers claim to be compliant with the MSC legislation, but some are not.
To help agencies concerned about the debt transfer risk, Lawspeed provides a unique Service Provider Audit (SPA) service. The scheme is entirely free for recruitment businesses.
Click the button below to get a free, independent and confidential report on the level of risk under the MSC legislation posed by the service provider company that you work with.
Benefits of SPA to recruitment agencies
- The SPA service enables recruitment businesses to create an approved supplier list of audited service providers that represent a low risk of debt transfer
- Re-audits are carried out every 6 months to ensure MSC risk remains low
- The SPA service is completely free to recruitment agencies, with no catches
- All reports are confidential and there is no conflict of interest.
Benefits to service providers.
- Increase of business. Once an agency is satisfied that the service provider poses low MSC risk, the agency is likely to regard it as a safe option for addition to a PSL
- Transparency. An independent audit from an industry specialist will validate the risk level, identifying those service providers that are genuinely low risk and introducing a level of transparency.
Click here to view the Managed Service Companies (MSC) Legislation.