The Managed Service Companies (MSC) legislation can expose recruitment companies to the transfer of the tax debt accrued by service providers, such as umbrella companies. Agency directors may be personally liable.
Lawspeed’s Service Provider Audit (SPA) service has been helping recruitment businesses to minimise their exposure under the MSC legislation, free of charge, for over a year. Whilst SPA has always been free to recruiters, it is now even easier to minimise your MSC risk using SPA.
Reminder of the problem
All service providers claim they are compliant so that they do not expose the agency to risk of debt transfer. However, some models carry risk that may not be obvious and if debt transfer does arise, the sums involved could be substantial.
Every MP will assert that his/her expenses claims are legitimate, some no doubt are and some apparently are not. However, an independent appraisal is essential in all cases. The same is true of your management of MSC risk – the assurances of the service provider and its stakeholders may be correct, but also may mask a risk. Each should be taken with caution.
An independent appraisal by Lawspeed, renewed evey 6 months. Our SPA reports are confidential and are not available to the service provider itself. This ensures that the results of the report are not influenced by the service provider in any way. Our client is the agency rather than the service provider and we do not provide accreditation logos – so no conflict of interest. Our concern is to assuredly minimise the MSC risk to our agency client, rather than to woo the satisfaction of the service provider.
For these reasons, SPA is an MSC risk solution to be trusted.
How does SPA work?
- To request your free SPA report, use our new online request form or call us on 01273 236 236.
- Our legally qualified staff review the arrangements the service providers have in place and report back to you on the level of MSC risk.
- All costs are passed onto the provider so there is no charge to the agency.
- A number of service providers have already been audited and their reports are ready to be sent out.
- We carry out re-audits and update you once every 6 months to ensure that your MSC risk remains low.
Visit https://www.lawspeed.com/contact or call us on 01273 236 236 to request your free SPA report now.
Adrian, a highly experienced lawyer, founded Lawspeed in 1997. He is responsible for developing our extensive portfolio of products and services, including the widely used Lawspeed contract templates. Adrian is an expert on “recruitment law” and specialises in contracts, regulatory compliance, employment status and dispute handling. He is chair of the trade body the Association of Recruitment Consultancies, the only lawyer lead recruitment trade body in the UK. Adrian and his co-director Ravi devised Standards in Recruitment as a vehicle for helping drive up standards and compliance in the industry.
Adrian is our lead in discussions with the government over regulatory evolution. Apart from assisting with client support, Adrian’s primary role is research and development into methods of business delivery, our latest service Proterms being his most recent project. Adrian heads our IR35 lawyers team.