Tag Archives: umbrella company

Umbrella Company Tarpon Comment On The Recent Announcement That MSC Investigations Have Risen Significantly

Under the freedom of information rules, it has been confirmed that the government are clamping down on tax avoidance arrangements through the use of Managed Service Companies (MSCs) legislation. The legislation enables the government to recover tax and National Insurance Contributions, and has caused investigations to treble in a short period of time. The news will no doubt be of interest to those working within both employment and financial industries, including UK umbrella companies such as Tarpon UK Ltd.

The company which submitted the Freedom of information requests to HM Revenue and Customs (HMRC) was recruitment law specialist, Lawspeed. The information revealed that the number of MSC tax avoidance arrangement enquiries had risen from 216 to 860, in the space of 7 months.

Lawspeed make it clear that since there has been 142 debt transfer notices issued since April 2011, recruitment supply companies that work with service providers should be very cautious.

The MSCs legislation defines Managed Service Companies as any contractor company that pays its worker more than employed levels of income. If HMRC discovers recruiters using companies that chose to avoid tax and National Insurance, this may result in the outstanding tax and National Insurance debt being transferred to them.

The director of Lawspeed, Adrian Marlowe, explains that the the law in this area is very complex and technical. He also stated that, “agencies should be careful to independently check the service providers they work with to assess the level of exposure to tax and national insurance transfer.”

A spokesperson from leading UK umbrella company Tarpon commented on the recent discovery:

“Although the number of investigations has risen dramatically, it’s vital that freelancers who are umbrella company employees do not panic. This news will only affect those who continue to avoid paying tax.

“Tarpon are proud to be 100% compliant to all tax legislation, which ensures safety not only to contractors and freelancers, but also clients and agencies.”

“Because there are numerous laws and regulations that must be followed when freelancing and contracting in the UK, we believe that it is up to umbrella companies to provide a genuine employment solution that helps create peace of mind for all employees.”

Via EPR Network
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2012 Could be the Year for Umbrella Companies, Say Umbrella Company Tarpon

The recent news of an extra boost for the umbrella company industry, in the form of a £1 billion grant, could support half a million jobs.

The new year could be the year for umbrella companies as the industry is boosted by an extra £1 billion injection in the Regional Growth Fund (RGF), assigned to help 500,000 people find jobs in 2012. The decision to award the RGF with an extra £1 billion is not only going to be beneficial for workers, but also those in the umbrella company industry.

A spokesperson for Tarpon explains:

“The news that the RGF is going to benefit from extra money really is fantastic because it’ll help give the employment market a really great boost in time for 2012. The RGF is a two year fund that’s designed to support a number of projects and programmes that create economic growth and sustainable employment. So getting this extra money means that half a million people could potentially get a new job that could last them a very long time.”

The news of the extra money, which was delivered by the Deputy Prime Minister, Nick Clegg, during a visit to the north-west of England earlier this month, has been welcomed by a number of industry insiders and job seekers alike. The focus of the fund will not only help get people into work, but also encourage private investment in the public sector. This is the second piece of good news for the umbrella company industry in as many months, as new figures from last month show that the demand for contractors has continued to rise.

A spokesperson for Tarpon continues:

“For every £1 of public money put into the RGF, the private sector will put in £5, which will help jump start growth across the UK. This, coupled with the news that the number of employers that have taken on contractors has grown for the 28th consecutive month in November, means that we anticipate that 2012 is the year for the umbrella company.”

Via EPR Network
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Umbrella Company Tarpon Encouraged By Report Showing PAYE Umbrella Contractors Prosper Within Financial Services Sector

Umbrella Contractor Tarpon have been encouraged by new research released by the specialist recruitment company Marks Sattin. It was revealed that salaries amongst financial services professionals rose by 8% during last year, and are predicted to rise by a further 13.5% this year.

Managing Director of Marks Sattin, Dave Way, said that the recession had had a negative effect on salary increases last year as employers looked to balance their deficits. If such trends were to continue into 2011, he explained, we are looking at similar rises (8.5 per cent), however, there are signs of optimism amongst professionals in the sector that business will pick up.

Mr Way added a cautionary note, however, and suggested that any hopes of a salary rise of 13.5% may be “over optimistic.”

Umbrella company Tarpon commented on the findings. A spokesperson for the company said:

“The study’s finding that pay rates for temporary staff in financial services remained higher than those for permanent staff and freelancers on long-term contracts is obviously great news for our sector.

“However, the findings should not be taken as read, when an alternative study has found that a sharp decline in financial services recruitment has declined.”

The contrasting study in question revealed that the two 4-day weekends in April was largely to blame for such a drop in recruitment. The study also stated that investment banking jobs declined by 30 per cent during the month, and that there was less recruitment activity in hedge funds and stockbroking.

Despite this, recruitment for investment banking countered the general trend by rising 19 per cent on the previous month. For umbrella company Tarpon, the signs overall are positive.

Another set of results published this month by the Recruitment and Employment Federation demonstrated that, although the pace of contract staff recruitment is on the up, the pace of expansion was at its lowest dso far in 2011.

Via EPR Network
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