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.

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 SJD Accountancy 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:

If you have any question about contracting or would like any further advice please call our New Client Services Team on 0500 152500 / 01442 275789 or email jaime.thorpe@sjdaccountancy.com

SJD Accountancy

SJD Accountancy are the UK's largest specialist provider of fixed fee, Limited company accountancy services to contractors; we've been acting for contractors across the UK since 1992 and have more than 15,000 clients.

We are the only national specialist firm of contractor accountants with offices nationwide. SJD Accountancy has more qualified staff than any other firm in our market with qualifications from the following major tax and accountancy bodies - ATT, AAT, CTA, ACCA, CA, ACA and FCCA.

  • Unlimited face to face meetings. This is a unique service only SJD Accountancy offers - unlimited face to face meetings across the UK - tax is complicated and sometimes only a meeting will do.
  • UK's Largest contractor accountants with more qualified staff. No call centres, no outsourcing, no automated call handling. Simply telephone, email or meet your own dedicated accountant* face to face.
  • Money back service guarantee. All your telephone calls and emails will be answered the same day or we will make a full refund of that months fee.
  • Outstanding reputation. We have won more awards for customer service and accountancy excellence than any other firm in our market, including: Best Accountant for Contractors, Accountant of the Year and Best Professional Service Team to name just a few.
  • All inclusive low cost fixed fee accountancy package which includes completion of accounts*, payroll bureau, dividends and corporation tax computations, personal taxation, free bookkeeping software, your own dedicated accountant* and all company returns for a fixed fee of £120 plus VAT per month.

If you have any questions about contracting or would like any further advice please call our new client services helpdesk on 01442 275789 or email: janice@sjdaccountancy.com.

Appoint SJD Accountancy and never worry about your tax or accountancy affairs again.

Form your own Limited company with SJD - our same day online company formation service includes company bank account set up, VAT/PAYE registration and advice on optimum share structure. 

You may also find the following pages, guides and case studies useful:

*If you would like us to complete your company year end accounts we simply ask that you have been a client of SJD for one year or have made 12 monthly payments. All accountants are part or fully qualified.