Contractors: managed service legislation goes through

IR35 Test

ContractorCalculator, live from the London Treasury:

Chancellor Gordon Brown announced no major changes to legislation penalising managed service companies in his budget speech today.

Despite Brown's stress on UK prosperity and improved investment, contractors are to be attacked and penalised by stringent legislation.

Brown insisted on 'flexibility' in the economy, and increased investment in science nonetheless, but contractors are to suffer.

The government is however going to clarify the definition of an Managed Service Company (MSC). It's also going to narrow scope of third party liability and delay it's application to certain third parties.

Those contractors not caught within the new MSC legislation and are running Limited Companies will still be hit, with the surprise shock rise in the small companies corporation tax rate from 19% to 20%.

More details and analysis follow shortly.

Published: Wednesday, March 21, 2007

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