KPMG confirms SJD Accountancy is fully compliant with the MSC legislation.
January 2008. Today SJD became the first firm of accountants to be confirmed by KPMG as ‘NOT’ being caught by the Governments Managed Service Company legislation.
Click here to read KPMG's review of SJD Accountancy.
As the UK’s largest specialist accountancy firm for contractors and freelancers, SJD Accountancy approached KPMG last year to review their business and processes for their compliance with the new MSC legislation. SJD are now delighted to announce that, after an intensive review they are fully compliant with all HMRC regulations.
In real terms, what this means for recruiters looking to recommend an accountant, is that by referring SJD accountancy they can be certain that they will not be liable for any contractors’ back taxes or penalties. Contractors can also feel confident that by using SJD they will not be caught by the MSC legislation. Currently SJD are the only such firm in the country to be reviewed and found to be compliant.
Managing Director Simon Dolan commented, " I am delighted that both SJD’s and ContractorUmbrella’s businesses have received KPMG’s accreditation. I feel sure that a very large burden will be lifted from recruiters who are looking to recommend bonafide accountancy firms and for contractors who are looking for a safe pair of hands to manage their tax affairs.
More and more people are choosing to operate through their own limited companies, partly due to changes in corporate working practices but also because of the freedom, control and enjoyment that comes from being your own boss. The fact that contractors, consultants and freelancers can command much higher daily rates of pay may also be an influencing factor but surely this is only to be expected, bearing in mind the lack of holiday and sick pay, and other additional benefits which are lost when moving from employment to contract work”.
Special Note - what is a Managed Service Company (MSC)? In the simplest terms, one which literally takes over the running of a contractor’s or freelancer’s limited company. By grouping contractors together and offering a ‘managed service’ scheme, numerous tax laws can be bypassed, including IR35. A number of MSCs sprang up a few years ago when the owners of these companies realised the potential benefits but the practice has never been condoned by professional accountancy bodies and has always been viewed as an attempt to take advantage of HMRC tax loopholes.
Last year the Government closed this loophole, effectively ruling out the use of Managed Service Companies and affecting more than 200,000 contractors in the process, as well as placing uncertainty in the minds of recruitment companies. If these recruiters were found to have recommended working practices which were later deemed to contravene the new legislation, then they could potentially become liable for any contractors’ back taxes, penalties or debts.
You may also find the following pages, guides and case studies useful:
Take home pay calculator - How much could you be taking home
First time Contracting or Freelancing? - A summary of the alternatives along with pros and cons
Step-by-step Guide to Contracting - Download a FREE copy of our guide
Limited or Umbrella? Can't decide? - We help you decide which is best for you
Take home pay case studies - Examples of contractors using a ltd co. & umbrella co.
Expenses Guide - Know exactly what you can claim
Umbrella company guide - Everything you ever wanted to know about umbrella company services
IR35 Guide - A great plain English guide to IR35
SJD Accountancy is the UK's largest specialist provider of fixed fee, limited company accountancy services to contractors and freelancers. It is the only national specialist firm of accountants with offices in all major cities, and is the chosen accountancy firm for more than 8,500 clients. It is also the only national accountancy firm in the UK to be accredited as a Quality Accountant (QA) by the Professional Contractors Group (PCG).
SJD Accountancy has been acting for contractors and small businesses since 1992 and is the most recommended accountancy firm on the Internet. It has more qualified staff than any other specialist firm, with qualifications covering the following major Tax and Accountancy bodies, including ATII, ATT, ACCA, CA, ACA, FCCA, ACMA.
SJD Accountancy offers a complete package including completion of accounts, payroll bureau, dividends, corporation tax computations, personal taxation and all company returns.
On top of all that, SJD have also won every relevant industry award possible, including:
- 'Small Firm of the Year' - Winner Accountancy Age 2007
- '100 Best Companies to Work For' Award - Sunday Times 2008 and 2007
- 'AXA Business of the Year' - Finalists National Business Awards 2007
- 'Best Contractor Accountant' - ContractorUK 2007 and 2006
- 'Outstanding Two Star Status' - Best Companies Accreditation 2008 and 2007
- 'Accountancy Age Award for Excellence' Winner 2004
- Winners of the "Sunday Times Best Small Companies to Work For in the UK" Award, achieving the highest position ever for a firm of accountants.
And most importantly, in a recent survey 98% of our clients rated SJD as 'better than other accountants' - we are working hard to convince the other 2%!
If you have any question about contracting or would like any further advice please call our New Client Services Team on 0500 152 500 / 01442 232700 or e-mail leanne@sjdaccountancy.com
